1982 (10) TMI 78 - AT - Income Tax

Summary

Issues: Registration of firm denied due to late filing of Form No. 11 for assessment year 1977-78.

The judgment pertains to an appeal regarding the registration of a firm for the assessment year 1977-78. The assessee contended that the registration should not have been denied due to the late filing of Form No. 11 without any reason. The Income-tax Officer based the denial on the non-filing of Form No. 11 before the deadline of 31st March, 1977, as the registration for the previous year was not granted. The assessee had filed Form No. 12 for continuation of registration on time, but Form No. 11 was filed late. The Income-tax Officer rejected the claim, citing the non-filing of the return for the earlier assessment year and lack of reason for the delay in filing Form No. 11.

The Appellate Authority Commissioner (AAC) upheld the Income-tax Officer's decision, noting the absence of a reason for the late filing of Form No. 11 by the assessee. However, in the appeal before the Appellate Tribunal, the assessee presented a letter dated 29th February, 1980, highlighting that a partnership deed was executed in 1973-74, Form No. 11 was filed for 1974-75, and Form No. 12 for renewal was submitted on time for the assessment year 1977-78. The assessee argued for the genuineness of the firm and sufficient cause for the delay in filing Form No. 11.

After considering the submissions, the Tribunal observed that the partnership deed was filed for the previous years, and Form No. 12 for renewal was timely submitted for the relevant assessment year. The Tribunal also noted a letter from the assessee explaining the reasons for the delay in filing Form No. 11, citing Circular No. 3P (XXV-22) of 1964. The Tribunal found the reasons provided by the assessee to be sufficient and reversed the AAC's decision, allowing the appeal of the assessee.

In conclusion, the Tribunal held that the registration of the firm should not have been refused based on the late filing of Form No. 11 for the assessment year 1977-78, considering the genuine nature of the firm, timely submission of Form No. 12, and the reasons provided for the delay in filing Form No. 11. The appeal of the assessee was allowed, overturning the decision of the AAC.