1997 (6) TMI 53 - AT - Income Tax

Application For Registration Assessment Year Bona Fide Firm Registration Registration Of Firm

Summary

Issues:
1. Registration of a firm for assessment years 1986-87 and 1987-88.
2. Timeliness of filing Form No. 11 for registration.
3. Application of Board's Circular dated 29-7-1964.
4. Genuine nature of the firm.

Analysis:

The Appeals by the revenue concern the registration of a firm for the assessment years 1986-87 and 1987-88, following a previous refusal of registration for the assessment year 1985-86 due to a delay in filing Form No. 11. The Assessing Officer rejected the registration claim for the subsequent years citing untimely filing of Form No. 11 without providing reasons for the delay, leading to an appeal by the assessee.

Before the DCIT(Appeals), the assessee argued that the firm's registration for the subsequent years should be allowed automatically if granted for the initial year, emphasizing the lack of doubt on the firm's genuineness. The DCIT(Appeals) directed the Assessing Officer to grant registration for the subsequent years based on the timely filing of Form No. 11 and adherence to the Board's Circular dated 29-7-1964.

The revenue contended that the fresh registration was not sought within the stipulated time and questioned the relevance of the Board's Circular. Conversely, the assessee maintained that the early filing of Form No. 11 for the subsequent years demonstrated awareness of the potential refusal for the initial year, supported by the timely submission of Form No. 12 and the firm's genuine nature.

The Tribunal examined the Board's Circular, emphasizing the importance of timely filing and the opportunity for firms to substitute declarations for subsequent years with registration applications in case of initial refusals. The Tribunal noted the firm's proactive submission of Form No. 11 before the official refusal for the initial year, concluding that the absence of a condonation request for delay did not negate the fulfillment of essential conditions for registration.

Ultimately, the Tribunal upheld the DCIT(Appeals) decision, highlighting the firm's genuineness and the lack of grounds to challenge the registration direction. The revenue's appeals were dismissed, affirming the registration grant for the assessment years 1986-87 and 1987-88.