1980 (9) TMI 67 - HC - Income Tax

Summary

Issues: Competency of appeal against assessment order treating firm as unregistered due to delay in filing declaration in Form No. 12 for the assessment year 1973-74.

Analysis:
The case involved a firm of six partners engaged in the business of purchase and sale of commodities. The firm had been granted registration for the assessment year 1972-73 but faced issues for the assessment year 1973-74 due to a delay in filing the declaration in Form No. 12. The Income Tax Officer (ITO) declined to condone the delay and consequently treated the firm as unregistered. The firm appealed to the Appellate Assistant Commissioner (AAC) challenging the assessment made by the ITO. The AAC allowed the appeal, directing the ITO to accept the delayed declaration and reassess the firm as a registered entity. The department appealed to the Tribunal, arguing that the appeal before the AAC was not maintainable. The Tribunal upheld the appeal on the grounds that the firm had sufficient cause for the delay in filing the declaration. The High Court, in its judgment, emphasized that the appeal before the AAC against the assessment order treating the firm as unregistered was valid. The court stated that the firm had the right to challenge the assessment order and that the appeal was competent. The court ruled in favor of the assessee, upholding the appeal and directing the department to bear their respective costs. The judgment clarified that the appeal was maintainable under the law, and the parties were to bear their own costs.