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Issues involved: Partnership deed reconstitution, failure to file Form No. 11A in time, refusal of registration by ITO, application under s. 264 rejected, delay condonation.
Partnership Deed Reconstitution: The firm, engaged in textile goods business, reconstituted its partnership on September 3, 1975, with Subhkaran Jatia, Shivhari Jatia, Vinodkumar Jatia, and Anilkumar Jatia as partners. The original partner, Sunilkumar Jatia, was replaced by Vinodkumar Jatia. The partners signed Form No. 11A for registration, but it was not filed due to oversight by chartered accountants. Failure to File Form No. 11A: The firm, unaware of the oversight, filed its income return for the assessment year 1977-78 indicating the partners as per the reconstituted deed. The ITO pointed out the missing Form No. 11A and refused registration due to untimely filing, leading to the firm's application under s. 264 being rejected. Delay Condonation: The High Court, upon review, found no fault on the firm's part and acknowledged the oversight by chartered accountants. Emphasizing the firm's genuine existence and compliance in subsequent years, the court deemed it unjust to penalize the firm for the professionals' mistake. The delay in filing Form No. 11A was condoned, and registration for the assessment year 1977-78 was directed to be granted, with the petitioner entitled to consequential reliefs. Separate Judgement: The Judge, S. C. Pratap, allowed the petition, setting aside the earlier order and directing the grant of registration. The refusal to interfere with the impugned order was deemed unjust, considering the absence of fault on the firm's part and the oversight by professionals. The court emphasized the need to prevent injustice caused by technicalities and upheld the firm's request for delay condonation.
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