Law:

Section:

Section 184 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Assessment year 1992-93 - Whether when a partnership firm files declaration in Form 12 for continuation of registration after expiry of time period prescribed under section 184(7), it is entitled for an opportunity to explain circumstances under which declaration was not filed within time - Held, yes FACTS The assessee was a partnership firm. For the assessment year in question it did not file its return of income within the specified period whereupon notice under section 142(1) was issued requiring it to file the return. When the return was not filed, a notice under section 148 was issued but for reasons best known to the applicant, it did not file the return within the specified time. However, it filed the return of income on 31-3-1994. The assessment proceedings were taken ex parte. Along with the return of income which was filed on 31-3-1994 the applicant had also filed the declaration in the prescribed Form 12 for continuation of the registration. The Assessing Officer while passing the assessment order under section 144 refused the continuation of registration on the ground that the declaration was not filed within the time specified under section 139 and the same was not in order. The appeal preferred by the assessee before the Commissioner as also the Tribunal insofar as was the question of continuation of registration was rejected. On appeal : HELD The Apex Court in the case of CIT v. Ashoka Engg. Co. [1992] 194 ITR 645/ 63 Taxman 510 held that, a declaration filed beyond time is to be treated to be not in order and the assessee is entitled for an opportunity to explain the circumstances under which the declaration was not filed within time. In view of the settled legal position, it was opined that the assessee was entitled of being heard prior to the declaration being rejected. In view of aforesaid, the Tribunal was not justified in upholding the order of the Assessing Officer, refusing to renew the registration without issuing show-cause notice and without affording any opportunity of being heard to the assessee for explaining the delay in furnishing the declaration within…

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