1. The High Court in the order under challenge answered the two questions set out below in favour of the assessee and against the Revenue:
“(i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the order passed under Section 186(1) of the Income Tax Act, 1961?
(ii) Whether registration under the Income Tax Act, 1961 can be granted to a firm constituted in violation of the Arms Act and the Rules made thereunder?”
2. The Revenue is in appeal by special leave.
3. The questions now stand concluded by the decision of this Court in Moti Lal Chunnilal v. CIT (1998) 9 SCC 401, (1998) 234 ITR 472. Following the said decision, the appeal is allowed and the order under appeal is set aside. No order as to costs.