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TMI Blog1992 (1) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... either applications for registration under section 184 of the Income-tax Act or declaration for continuance of registration under the same section. Section 184(4) requires the application to be made before the end of the previous year for the assessment year in respect of which registration is sought but the proviso to the sub-section empowers an Income-tax Officer to entertain the application, if he is satisfied that the firm was prevented by sufficient cause from making an application before the end of the previous year. Likewise, sub-section (7) of section 184 requires that the declaration should be made within the time allowed therefor. But the sub-section also permits the Income-tax Officer, if he is satisfied that the firm was preven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm with the constitution so specified, he shall pass an order in writing registering the firm for the assessment year ; (b) if he is not so satisfied, he shall pass an order in writing refusing to register the firm. (2) The Income-tax Officer shall not reject an application for registration merely on the ground that the application is not in order, but shall intimate the defect to the firm and give it an opportunity to rectify the defect in the application within a period of one month from the date of such intimation. (3) If the defect is not rectified within such time, the Income-tax Officer may reject the application." Civil Appeal No. 5552 of 1990, which is the case under section 184(7) relates to the assessment year 1971-72. Wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce is that such an application or declaration cannot at all be entertained by the Income-tax Officer unless he is satisfied that there exists some sufficient cause for the delay. On the other hand, the other point of view is that the provisions of sections 185(2) and (3) are sufficiently wide to take in these cases as a delayed application can be said to be an application not in order because it has not been filed within the stipulated time. In such cases, like any other defect, this defect also should be brought to the notice of the assessee and, if he does not rectify the defect, the Income-tax Officer has to pass an order rejecting the application. In other words, the contention is that even a delayed application is a defective applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opportunity to the assessee to show cause as to how it can be entertained. Sometimes, even his impression that there is delay may itself be shown to be wrong. If the assessee satisfies the Income-tax Officer that there was sufficient cause, then the application has to be entertained by the Income-tax Officer. In other words, the defect that the application was beyond time stands remedied and the application is in order. On the other hand, if delay is not condoned, the officer rejects the application as not "in order". The defect need not be something in the application. It can also be one in the procedure prescribed for making the application. In our opinion, there is nothing artificial or strained in the interpretation placed by the H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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