DILSUKHARI RANGLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) UNDISPUTED facts are that the assessee was granted registration under section 26A of the Indian Income -tax Act, 1922 (hereinafter to be referred to as 'the old Act'), till the assessment year 1961 -62. It did not file its returns for the accounting year ending in Diwali on October 19, 1961, under section 139 (1) or (4) of the Income -tax Act, 1961 (hereinafter to be referred to as 'the new Act'). Best judgment assessment was completed under section 144 of the new Act for the assessment year 1962 -63. The status of the assessee was determined as an 'unregistered firm'. The assessee filed a declaration under section 184(7) of the new Act in Form No. 12 on June 28, 1962. The due date for filing of return of income was June 30, 1962. No return was, however, filed. The new Act came into force on April 1, 1962.

(2.) THE assessees stand was that the firm being registered up to and including the assessment year 1961 -62, it was required only to file a declaration in Form No. 12 under section 184(7) and the assessee having filed such a declaration the Income -tax Officer was not correct in treating the status as an 'unregistered firm' by cancelling the registration even though he made the assessment for the assessment year 1962 -63 under section 144 of the new Act for non -filing of the return.

(3.) AGAINST the order of the Income -tax Officer completing the assessment under section 144 the assessee filed an appeal under section 246(c) of the new Act before the Appellate Assistant Commissioner challenging the status. The appeal was dismissed. The Income -tax Appellate Tribunal in second appeal remanded the case as evidence of filing of declaration under section 184(7) was produced. The Appellate Assistant Commissioner after remand by his order dated March 31, 1970, allowed the appeal and directed the Income -tax Officer to register the firm.