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TMI Blog1991 (8) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Departmental Representative. 2. The assessee is a firm and, it appears, had been allowed registration in the past. For the year under consideration it filed a return of income at Rs. 31,910 but perhaps Form No. 12 for continuation of registration was not submitted. The ITO completed the assessment under section 143(1) and wrote on the Income-tax Computation Form as under :--- " Asst. made in the status of URF due to non-produce (sic) the evidence (sic) of Form No. 12 letter issued (sic) to assessee on 8th March but not compliance." (sic) In this way, the status of the assessee was taken as URF. The order is dated 20-3-1989. The assessee filed an appeal before the ld. Deputy Commissioner (Appeals) in which it claimed that the ITO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the additional ground of appeal made vide letter dated 21-7-1989 regarding sufficient cause for non-filing of declaration in Form No. 12. He also did not give any decision on the Grounds of Appeal which were taken in the Memo of Appeal filed before him. 3. In the appeal filed before us, it has been claimed that the learned Deputy Commissioner (Appeals) has erred in holding that the order under section 143(1) along with 184(7) (sic) on same sheet is not appealable. It is further submitted that the ld. Deputy Commissioner (Appeals) erred in law and in fact to deny justice to the appellant and did not consider evidence on record. It is also claimed that the ld. Deputy Commissioner (Appeals) erred in not entertaining the additional ground a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT v. Nagarmal Bisheshar Lal [1991] 190 ITR 468 where the Hon'ble High Court has, after referring to equally large number of decided cases and following a very large number of decided cases held that the assessment of a firm, as a Registered Firm or as an unregistered firm is a matter of status and a dispute that a firm is entitled to be a Registered Firm relates to the status under which the assessee is liable to be assessed. Their Lordships have observed that the effect of the order of the ITO refusing to condone the delay in filing the application for registration is a refusal to assess the firm as a registered firm. Therefore, an appeal lies from that order under section 246(c). Their Lordships have further held that where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be given an opportunity to first confirm whether it is true that the Form No. 12 was not filed and, secondly, if it is filed at a late stage whether there was sufficient cause for the delay in filing the Form No. 12. If the ITO in his discretion chooses not to condone the delay, in view of the decision of the Hon'ble Allahabad High Court in the case of Nagarmal Bisheshar Lal, it becomes an appealable order. 7. We are conscious of the fact that in the instant case the case of the revenue is that Form No. 12 was not filed at all and hence the question of condoning the delay does not arise. Yet, the facts and circumstances lead us to believe that this claim of the revenue may not be wholly correct particularly when the assessee has not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be given a proper opportunity to explain whether it had filed an application/Declaration for continuation of Registration or it was filed late, and if it was not filed in time whether there could be a sufficient cause for the delay and whether that delay could be condoned. 8. We are, therefore, of the opinion that it would be in the interest of justice if the order of the learned Deputy Commissioner (Appeals) is set aside with the direction that he shall entertain the appeal, as we hold that an appeal against the impugned order of the ITO is maintainable. Further, he shall give a reasonable opportunity to the assessee to explain its case and also to adduce necessary evidence to support it. In case, some fresh evidence is produced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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