1990 (8) TMI 118 - HC - Income Tax

Summary

Issues:
- Interpretation of section 139 and section 140 of the Income-tax Act, 1961 regarding the filing and verification of income tax returns.
- Validity of an application in Form No. 6 for extension of time for filing a return when not signed by an authorized person.
- Whether a technical irregularity in signing the application should invalidate the extension request.

Analysis:
The judgment pertains to a reference under section 256(1) of the Income-tax Act, 1961, where the issue was whether the Tribunal was correct in directing the Income-tax Officer to consider an application in Form No. 6 for extension of time for filing a return, even though it was not signed by an authorized person as required under section 140. The assessee, a charitable trust, filed a return claiming exemption under section 11(1) for charitable purposes. An application for extension of time was filed on June 30, 1978, but was signed by a counsel due to the authorized person being unavailable. The Income-tax Officer rejected the application, leading to an appeal by the assessee.

The High Court analyzed the provisions of section 139 and section 140 of the Income-tax Act, emphasizing that while the return must be signed and verified as per section 140, the application for extension of time in Form No. 6 has no such verification requirement. The Court noted that the application form only states that it should be signed by the person entitled to sign the return, without mandating verification. The Court opined that the absence of the authorized person's signature on the extension application should not automatically render it invalid, as it would be a curable irregularity. The Court highlighted that the technicality of the signature requirement should not override the purpose of granting an extension for filing returns.

Ultimately, the Court held in favor of the assessee, affirming the Tribunal's decision that the Income-tax Officer was not justified in rejecting the extension application solely based on the lack of the authorized person's signature. The judgment concluded that the application irregularity could be rectified and did not warrant dismissal. Therefore, the Court answered the reference question against the Department, supporting the Tribunal's directive to entertain the application in Form No. 6 despite the signature issue.