1990 (10) TMI 29 - HC - Income Tax

Summary

Issues:
1. Appeal against order of Income-tax Officer refusing continuation of registration under section 184 of the Income-tax Act, 1961.
2. Entitlement of the assessee-firm to continuation of registration for the assessment year 1972-73.

Analysis:
The High Court of Patna addressed two key issues in this judgment. The first issue pertained to whether an appeal lies against an order of the Income-tax Officer refusing continuation of registration under section 184 of the Income-tax Act, 1961. The second issue concerned the entitlement of the assessee-firm to continuation of registration for the assessment year 1972-73.

Regarding the first issue, the Income-tax Officer had refused continuation of registration for the assessee-firm due to the failure to file a declaration in Form No. 12 by the specified deadline. The Appellate Tribunal held that an appeal was justified against this order. The High Court, citing a connected case, confirmed that an appeal indeed lies against such orders before the Appellate Assistant Commissioner, making the second appeal to the Tribunal competent.

On the second issue, the Tribunal found that the delay in filing the declaration in Form No. 12 was due to a bona fide mistake on the part of the assessee. The Tribunal considered the bona fide belief of the assessee and the lack of evidence to substantiate the timely filing of the declaration. Relying on a decision of the Allahabad High Court, the Tribunal deemed the bona fide mistake as sufficient cause to condone the delay. Consequently, the Tribunal ruled in favor of the assessee, granting continuation of registration for the assessment year 1972-73.

In conclusion, the High Court answered both questions in favor of the assessee and against the Department. The judgment highlighted that the Tribunal's decision was based on factual considerations and did not involve any legal perversity. As no representation was made on behalf of the assessee, no costs were awarded. The High Court directed the transmission of the judgment to the Assistant Registrar of the Income-tax Appellate Tribunal 'B' Bench, Patna, as per the provisions of the Income-tax Act.