1989 (1) TMI 23 - HC - Income Tax

Summary

Issues:
1. Delay in filing Form No. 11 for renewal of registration of the firm.
2. Acceptance of explanation for delay by the Income-tax Appellate Tribunal.
3. Restoration of the matter to the file of the Income-tax Officer for consideration of the application in Form No. 11.

Analysis:
For the assessment year 1974-75, the assessee filed applications in Form No. 12 for renewal of registration and Form No. 11 for fresh registration, both beyond the limitation period. The Income-tax Appellate Tribunal accepted the explanation for the delay in filing Form No. 11 but not for Form No. 12. The Tribunal directed the Income-tax Officer to consider Form No. 11 for registration. The Department raised questions on the Tribunal's decision, questioning the condonation of delay and restoration of the matter to the Income-tax Officer.

The High Court upheld the Tribunal's decision, stating that no cause was found to interfere with the Tribunal's discretion in accepting the explanation for the delay in filing Form No. 11. The Court emphasized that it was a factual matter, not a legal one. Since registration was denied for the previous year, the Court found no need to consider Form No. 12. Consequently, the Court ruled in favor of the assessee, affirming the Tribunal's decision to condone the delay in filing Form No. 11 and to restore the matter to the Income-tax Officer for fresh consideration.

In conclusion, the High Court found in favor of the assessee, affirming the Tribunal's decision to condone the delay in filing Form No. 11 and to restore the matter for fresh consideration. The parties were directed to bear their own costs in this matter.