TMI Blog1988 (9) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... firm, under the Income-tax Act, 1961, annually the firm filed a declaration in Form No. 12. Relevant to the question in reference, the declaration was to be filed before October 16, 1971. The firm, instead filed it on November 15, 1971. On February 6, 1974, the firm explained that as one of the partners was bedridden due to cardiac trouble in the months of August to November, 1971, the delay occurred. The Income-tax Officer did not believe the explanation and stated that the declaration was signed on November 3, 1971, and was filed on November 15. The reason shown for the delay was not "genuine" and, therefore, rejected the declaration. The Appellate Assistant Commissioner, on appeal, condoned the delay. On further appeal by the Revenue, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sudan Lal v. Addl. CIT [1972] 83 ITR 854, considered a like question in a writ petition. In that case, the declaration was signed by a person other than the appropriate person, and, therefore, the registration was refused. That High Court held that such an order was not appealable. In Sandersons and Morgans v. ITO [1973] 87 ITR 270, a single judge of the Calcutta High Court in a writ petition considered the scope of sections 184 and 187 and observed that no separate order under section 184(7) is required to be passed. But a separate order by the Income-tax Officer is required to record the fact of rejection of registration so that when the assessee prefers an appeal against the assessment order, the assessee can assail the rejection order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efusing to register the firm." Sub-section (3) of section 185 reads as under: "Where the Income-tax Officer considers that the declaration furnished by a firm in pursuance of sub-section (7) of section 184 is not in order, he shall intimate the defect to the firm and give it an opportunity to rectify the defect in the declaration within a period of one month from the date of such intimation ; and if the defect is not rectified within that period, the Assessing Officer shall, by order in writing, declare that the registration granted to the firm shall not have effect for the relevant assessment year." The above provisions show that the Income-tax Officer is to be satisfied as to the genuineness of the firm. If, in the previous year, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration within the time so allowed, he may allow the firm to furnish the declaration at any time before the assessment is made." If there is no change in the constitution of the firm, what is set out in clause (i) follows. In clause (ii) before the expiry of the time allowed for furnishing the return of income for subsequent assessment year, a declaration to that effect, in the prescribed Form No. 12 has to be verified and filed. If the officer is satisfied that the firm was prevented by sufficient cause, and, therefore, did not file the declaration, the Income-tax Officer can condone the delay. The condonation does not fall within the four corners of sub-section (7). Sub-section (7) recites that the Income-tax Officer may "allow t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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