9911796707
TMI Blog1980 (6) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... took five others as partners and he continued business in the same line. The application for registration should have been filed before the close of the accounting year, viz.31st March, 1974, but is actually filed on30th Sept., 1976. The assessee filled an application for condensation of delay and pleaded that the delay took place because of the advice given by Shri Jai Parsad Jain, Advocate, who had advised the assessee that the application for registration had to be filed at the time of the assessment. An affidavit dt.29th Feb., 1976of Shri Jai Parshad Jain, Advocate was also filed. The ITO, however, did not accept the assessee s application for condemnation of delay. According to the ITO, the affidavit of the Advocate was simply an afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nirmala Devi ors. (1979) 118 ITR 507 (SC) it has been held as under: "Held that the law is settled that mistake of counsel may in certain circumstances be taken into account in condoning the delay although there is no general preposition that mistakes of counsel by itself is always a sufficient ground. It is always a question whether the mistake was bona fides or was merely a device to cover an ulterior purpose such as laches on the part of the litigant or an attempt to save limitation in an underhand way. The court must see whether, in such cases, there is any traint of mala fides or element of recklessness or ruse. If neither is present, legal advice honestly sought and actually given, must be treated as sufficient cause when an appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement of Shri Jai Parshad Jain that he advised the assessee to keep the relevant papers with them and file them before the ITO at the time of assessment. Since Shri Jai Parshad Jain is not practising on the income-tax side he was not aware of the limitation of filing the application or registration and the delay in this case took place because of the advice received from the Advocate. The fact, that no expenditure for drafting of the dissolution deed and the partnership deed from the partners of the firm was charged is explained to the reason that he is a relation of the two partners, and, therefore, Jai Parshad Jain did not charge them for the service rendered. On the facts of this case we would hold that there was a sufficient cau ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
