EASTERN INSULATION CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN the present reference, the following question of law has been referred to this Court under S. 256 (1) of the INCOME TAX ACT, 1961, at the instance of the assessee for the asst. year 1971 -72 :

(2.) FOR the asst. year 1971 -72, the assessee filed an application before the ITO under S. 184(7) of the IT Act in Form No. 12 seeking continuation of registration. This application was filed by the assessee on 10th Oct., 1971, although the due date for filing the same expired on 30th Sept., 1971. The ITO called upon the assessee to explain why the application was not filed within time. The assessee, as against the same, explained that Form No. 12 which is the prescribed form of application under S. 184(7) of the Act was sent to Bombay for the signature of one of the partners and as it was not returned by that partner within time, the assessee could not file the application within the prescribed time. The ITO, however, held that the assessee has failed without reasonable cause to file the application for renewal of registration within the statutory time -limit observing that the assessee had not placed before him any evidence and, accordingly, he refused to continue registration for the asst. year 1971 -72. The assessee filed an appeal before the AAC, who upon verification of the facts of the case, directed the ITO to condone the delay and to grant the assessee continuation of registration for the year 1971 -72. Against the above order of the AAC, the Revenue filed an appeal before the Tribunal. The Tribunal, after perusal of the records and hearing the parties, held that the AAC was wrong in entertaining the assessee's appeal and also in directing the ITO to condone the delay under S. 184(7) of the Act and to grant registration to the firm. Hence, the present reference on the basis of the application under S. 256(1) of the IT Act at the instance of the assessee.