MUKUNCHAND BAID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an income-tax reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the assessee. The following question of law has been referred by the Tribunal for answer by this court :

(2.) THE assessee is a partnership firm. THE assessee was granted registration and it was renewed year after year. For the assessment year 1982-83, the assessee filed Form No. 12 for renewal of registration on March 31, 1983, along with the return. As there was a delay in filing Form No. 12, the Income-tax Officer rejected the renewal application. THE reasons given by the assessee for the delay in presenting the application in Form No. 12, are that one of the trucks belonging to the assessee met with an accident in which three labourers were killed and the assessee was involved in the legal battle. However, this explanation did not satisfy the Income-tax Officer, who assessed the assessee at Rs. 55,610. Aggrieved by the order of the Income-tax Officer, the assessee approached the Appellate Assistant Commissioner who allowed the appeal of the assessee. THE Revenue filed a second appeal before the Tribunal and the Tribunal set aside the order of the Appellate Assistant Commissioner and maintained the order of the Income-tax Officer. Hence, the assessee made an application to the Tribunal for reference of the case to this court. Accordingly, the aforesaid question has been referred by the Tribunal to this court for its answer.

(3.) AS per this circular, it is apparent that belated filing of declaration in Form No. 12 under Section 184(7) of the Act could be treated to be innocuous if that declaration is filed along with the belated return and the assessment has not been made ex parte under Section 144 of the Act. In the present case, the return was filed by the assessee on March 31, 1983, though it was belated, along with the declaration in Form No. 12. Therefore, as per the circular, if any return has been filed along with the declaration and ex parte assessment has not been made by the Revenue, then as per the circular, belated filing of the declaration under Section 184(7) will be deemed to be sufficient compliance with the provision. The circular was not brought to the notice of any of the authorities below. It was brought to the notice of the Tribunal for the first time when the reference application was made before the Tribunal. Since the necessary foundation is already there and as per the circular, belated filing of declaration in Form No. 12 would not visit the assessee with any adverse affect as that would be deemed to be sufficient compliance with the provision. In this view of the matter, we answer the question in favour of the assessee and against the Revenue.