COMMISSIONER OF INCOME TAX Vs. JEWEL CINEMA

JUDGEMENT

(1.) WHETHER the Income-tax Officer's order refusing o condone the delay in filing a declaration in Form No. 12 under Section 184(7) of the Income-tax Act, 1961, is appealable under Section 246. This is the all important question posed for our opinion by the Appellate Tribunal. To answer this, it has to be seen whether the crucial order has been passed under Section 184(7) or under Section 185(1)(b) or under Section 185(3). No appeal will lie in the former case as any order passed under Section 184(7) is not appealable under Section 246 but it would certainly lie if it is concluded that the order falls under Section 185.

(2.) WE are conscious that we are not traversing any virgin field. Most of the High Courts, barring our court, have already pronounced on the point in issue and held in favour of maintainability of the appeal. All the same it becomes necessary to deal with the matter and answer the reference, though for different reasons, but in a repeat exercise.

(3.) MR. Gupta, representing the assessee, on the contrary argued that niceties of interpretation of the provisions apart, the net effect of the Income-tax Officer's order amounted to refusal of registration to the assessee and increase in its tax liability. That being so, the order fell under Section 185(1)(b) and was appealable. He invited our attention to the relevant order which concludes thus :