1986 (12) TMI 83 - AT - Income Tax

Summary

Issues:
- Appeal against the direction for continuation of registration under s. 184(7) of the IT Act, 1961 for the respondent partnership firm in respect of asst. yr. 1976-77.
- Maintainability of appeal against the ITO's order rejecting registration request.
- Validity of the condonation of delay in filing Form No. 12 for registration continuation.

Analysis:
1. The Revenue appealed against the direction allowing continuation of registration for a partnership firm for the assessment year 1976-77 under s. 184(7) of the IT Act, 1961. The ITO had initially declined registration due to the absence of Form No. 12 filed with the return. The firm claimed to have submitted the form, supported by an affidavit and a subsequent filing of the form on 28th Jan., 1978. The ITO rejected the registration request despite the submission, leading to the appeal.

2. The AAC dismissed the initial appeal by the firm on grounds of maintainability, but the Tribunal reversed this decision, holding that the s. 184(7) order was appealable. The Revenue's petition to the High Court was also rejected, leading to a fresh order by the AAC in 1985, condoning the delay in filing Form No. 12 and directing the ITO to allow continuation of registration.

3. The Revenue contended that the firm's explanations were unfounded and that the ITO was correct in rejecting registration. On the other hand, the firm argued that despite confusion, a valid request for continuation was made on 28th Jan., 1978, and the AAC's decision was justified.

4. The Tribunal analyzed the submissions and documents, noting that some documents were submitted earlier, and there was no deficiency in the later submission of Form No. 12. The Revenue had accepted the firm's genuineness for previous years, and the firm had provided a reasonable explanation for the delay in filing the form.

5. Considering all aspects, the Tribunal upheld the AAC's decision, finding it a fit case for condonation of delay based on the application submitted on 28th Jan., 1978. The Tribunal found no reason to interfere with the AAC's order, ultimately dismissing the Revenue's appeal.