Law:

Section:

Section 184 of the Income-tax Act, 1961 – Firm – Position prior to 1-4-1993 – Assessment year 1970-71 – Whether ITO has no jurisdiction to extend time for filing declaration if declaration was not filed within prescribed time as required under section 184 – Held, yes – Whether, therefore, appellate authority cannot assume more powers than ITO and give time beyond prescribed period to file declaration or to direct ITO to give time to assessee to file declaration and treat assessee as registered firm – Held, yes FACTS The assessee had not filed a declaration under section 184(7) in Form No. 12 and so the ITO took the status of the assessee as unregistered firm. The AAC affirmed the order of the ITO. The Tribunal held that the genuineness of the firm was never in dispute and so the registration had been granted for all the subsequent years and also for the earlier years. The Tribunal, therefore, held that it would be unfair to deny registration to the assessee on the technical ground that Form No. 12 was not filed along with the return of income and that the non-filing of Form No. 12 was an unintentional omission and for this purpose it would be harsh to deny registration to the assessee. Accordingly, the Tribunal directed the ITO to grant registration to the assessee-firm after giving an opportunity to file the declaration as prescribed under the Act within one month from the date of receipt of the order. On reference: HELD Considering the language of sub-section (7) of section 184, unless the conditions laid down by the proviso to this sub-section are fulfilled, the registration granted to any firm in any assessment year cannot have any effect for the subsequent assessment years. Reading the provisions of sub-section (7) of section 184 and rule 24 of the Income-tax Rules, 1962, it was found that the ITO had no jurisdiction to extend the time for filing the declaration if the declaration was not filed within the prescribed time as required under section 184. That being so, the appellate authority, that is, the Tribunal, cannot assume more powers than the ITO and give time beyond the prescribed period to file the declaration or direct the ITO to give time to the…

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