1987 (3) TMI 107 - HC - Income Tax

Summary

Issues:
1. Maintainability of the appeal by the assessee before the Appellate Assistant Commissioner.
2. Justification for allowing continuation of registration to the firm.

Analysis:

Issue 1: Maintainability of the appeal
The High Court examined the first issue concerning the maintainability of the appeal by the assessee before the Appellate Assistant Commissioner. The Court referred to a previous decision in the case of CIT v. Gyanchand Bedi, where it was held that an order refusing registration is appealable as it affects the status of the assessee. The Court agreed with this view and concluded that the appeal was properly entertained by the Appellate Assistant Commissioner.

Issue 2: Continuation of registration to the firm
Regarding the second issue of allowing continuation of registration to the firm, the Court analyzed the facts. The Court noted that the application for registration should have been filed by September 30, 1971, as per the statutory requirement. The assessee contended that an application for extension of time had been sent to the Income-tax Officer, thus assuming an extension of the filing deadline. However, the Court found this argument to be flawed. It emphasized that any request for an extension must be made before the statutory period lapses. In this case, there was no evidence of when the application for extension was sent or received by the Income-tax Officer. The Court highlighted that the application for extension was not on record, and no reasonable cause was presented for the delay. The Court held that the Tribunal was erroneous in allowing the continuation of registration, as the application for registration was not filed on time, and no valid reason was provided for the delay. The Court emphasized that compliance with the law is essential for obtaining registration benefits.

In conclusion, the Court answered the first question in favor of the assessee, stating that the appeal was rightly entertained. However, the Court answered the second question in favor of the Revenue, stating that the Tribunal was not justified in allowing the continuation of registration to the firm. The references were answered without costs, and a copy of the judgment was to be transmitted to the Assistant Registrar, Income-tax Appellate Tribunal, Patna, as per the provisions of the Income-tax Act.