9911796707
TMI Blog1977 (2) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... may be stated at the outset. The petitioner-firm had been granted registration for the assessment year 1961-62 under section 26A of the Indian Income-tax Act, 1922. Thereafter, the registration of the firm was continued from year to year. For the assessment year 1971-72, the petitioner filed its return of income on March 10, 1972. Along with the return it sent its declaration in Form No. 12 for continuation of the registration of the firm, under sub-section (7) of section 184 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The Income-tax Officer in the course of his assessment order dated December 30, 1972, refused to continue the registration of the firm on the ground that such declaration was belated having been filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration of the firm. In the counter-affidavit filed on behalf of the respondents, the petitioner's averments that it gave an application for extension of time till August 16, 1971, that it had been granted such extension of time and that it again made another application on August 16, 1971, for further extension of time till March 31, 1972, have not been admitted. However, the fact of an acknowledgment having been issued to the petitioner by the office of the Income-tax Officer on August 16, 1971, has not been disputed. But it is stated in the counter-affidavit that the application said to have been given by the petitioner on August 16, 1971, for extension of time, could not be traced in the records of the Income-tax Officer and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is granted to any firm for any assessment year, it shall have effect for every subsequent assessment year: Provided that- (i) there is no change in the constitution of the firm or the shares of the partners as evidenced by the instrument of partnership on the basis of which the registration was granted; and (ii) the firm furnishes, along with its return of income for the assessment year concerned, a declaration to that effect, in the prescribed form and verified in the prescribed manner." For clause (ii) of the above proviso, the following new clause was substituted with effect from April 1, 1971 : "(ii) the firm furnishes, before the expiry of the time allowed under sub-section (1) or sub-section (2) of section 139 (whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficult to believe that an assessee would apply for further extension of time by 7 1/2 months to file his return of income. Neither of the above reasons for the above conclusion of the Commissioner can be regarded as valid. Not every assessee retains copies of the applications made by him to the income-tax authorities. Non-production of such copy cannot be regarded as a ground for disbelieving the petitioner's assertion that he had made such application, when such assertion is supported by the acknowledgment issued by the office of the Income-tax Officer. That the petitioner was not likely to have requested for further extension of time by 7 1/2 months, appears to us to be a mere conjecture. The Commissioner has stated in his order th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was inadvertently lost sight of by the assessee and, therefore, a delay of two months in filing the application. Since the law was a new one and taxpayers had not yet become fully conversant with it, I think in the very first year of the change in the law it can be said that the assessee was prevented by reasonable cause in filing the application. The order of the Income-tax Officer refusing registration is, therefore, set aside. He is directed to consider the assessee's request for registration on merits and pass a fresh order." Shri Jindal complained that the Commissioner did not show to the petitioner the same indulgence as was shown to another firm in the above order though the petitioner's case also related to the same year, i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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