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TMI Blog1993 (2) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... so (ii) of section 184(7) was not complied with inasmuch as the firm had not furnished along with its return of income for the assessment year a declaration in the prescribed Form No. 12 and in the absence of any reason for such default ? " The assessee is a partnership firm. The relevant assessment year is 1970-71. The assessee filed its return of income for the above assessment year on July 3, 1972. The assessee-firm was earlier granted the benefit of continuation of registration by the Income-tax Officer under section 184(7) of the Income-tax Act, 1961 ( for short, " the Act " ). During the course of the assessment proceedings for the relevant assessment year 1970-71, the Income-tax Officer informed the assessee about the absence of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, he could have easily verified this from his inward register and/or acknowledgment book. But without taking the trouble of finding out the fact, he simply disbelieved the explanation offered by the assessee." The Appellate Assistant Commissioner further observed that the genuineness of the firm was not doubted by the Income-tax Officer but the benefit of continuation of registration had been refused only on the ground of non-filing of the declaration in Form No. 12 along with the return. This, according to the Appellate Assistant Commissioner, was not proper. The Appellate Assistant Commissioner, therefore, directed the Income-tax Officer to entertain the duplicate copy of the declaration and allow the benefit of continuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the firm was prevented by sufficient cause from furnishing the declaration within the time so allowed, he may allow the firm to furnish the declaration at any time before the assessment is made." This reference relates to the assessment year 1970-71. However, the return was submitted by the assessee on July 3, 1972, after the amendment had come into force. Prior to the amendment, the requirement was to file the declaration along with the return of income. After the amendment, the assessee was required to furnish the same " before the expiry of the time allowed under subsection (1) of section 139 for furnishing the return of income for such subsequent assessment year ". Another change that was brought in by the amendment was that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 225/86/71-ITA-11). In the said circular, it was observed that a strict interpretation of the above provision was likely to cause genuine hardship in many cases. In that view of the matter and in view of the specific power conferred on the Income-tax Officer to allow the assessee-firm to furnish the declaration at any time before the assessment was made where he was satisfied that the firm was prevented by sufficient cause from furnishing the declaration in time, the Board desired the Income-tax Officers to be liberal in condoning the delay. The instructions of the Board are clear. The object is to instruct the Income-tax Officers not to refuse continuation of registration merely on the ground of delay and to take a liberal approach in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me within which it has to be filed. As stated earlier, under clause (ii) of the proviso to section 184(7) as amended by the Taxation Laws (Amendment) Act, 1970, with effect from April 1, 1971, though such declaration is required to be furnished before the expiry of the time allowed under sub-section (1) of section 139 for furnishing the return, power has also been conferred on the Income-tax Officer to allow a firm to furnish the same " at any time before the assessment is made ". The undisputed position is that the amendment applies not only in relation to the assessment year 1971-72, but also for the assessment year 1970-71 or any earlier year where the question of continuation of registration is considered on or after April 1, 1971. (See ..... X X X X Extracts X X X X X X X X Extracts X X X X
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