Law: Income Tax Act, 1961

Section: 184

Section 184 of the Income-tax Act, 1961 - Firm - Assessed as such - Assessment year 1962-63 - Assessing Officer refused renewal of registration of assessee-firm under section 184(7) on ground that requisite declaration was filed late and not along with return of income - Tribunal, however, did not agree with Assessing Officer and held that renewal could not be refused merely because declaration in due form had not been literally submitted along with returns filed by assessee - Whether since section 184(7), before its amendment by Amendment Act, 1970, did not intend to specify any rigid time limit for declaration, order of Tribunal allowing continuance of registration of assessee was legal and proper - Held, yes FACTS The assessee was a registered firm. For the assessment year 1962-63, it filed return of its income on 11-2-1963 and a declaration under section 184(7), for the continuation of its registration as a firm for the previous year on 27-11-1966. The ITO assessed the assessee as an unregistered firm on the ground that the declaration under section 184(7) was filed late and not along with the return. Therefore, the final assessment of the assessee was made by the Assessing Officer by treating it as an unregistered firm and not allowing renewal to it on the belated submission of the declaration in due form. On appeal, the AAC refused to interfere holding that no appeal lay before him against the order of refusal passed by the ITO. The Tribunal, however, held that the appeal was maintainable also in the matter concerning the status of the assessee and further that renewal could not be refused merely because the declaration in due form had not been literally submitted along with the return filed by the assessee. HELD As regards the question whether it should be held that the term "along with its return of income" means a literal stitching-up of the declaration with the return and is mandatory, or is the provision of its being so filed along with the return merely directory. Looking to the spirit and substance of the legislative provision in question, it is clear that the term "along with its return of income" were merely directory and not mandatory. The law…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492