Law:

Section:

Section 184 of the Income-tax Act, 1961 – Firm – Position prior to 1-4-1993 – Assessment year 1963-64 – Assessee firm made delay in filing application for registration – Delay was because of non submission of necessary papers before ITO by assessee's counsel due to lapse of his memory – ITO denied registration – Tribunal found that assessee was firm of repute, that it had granted registration year after year in past, and said counsel had not committed any such default in past – On such findings it granted registration to firm and set aside order of ITO – Whether question whether mistake of counsel was bona fide or not was essentially question of fact and Tribunal having concluded that lapse on part of counsel was bona fide, it was justified in condoning delay – Held, yes FACTS The application for the registration for the assessment year in question was filed by the assessee firm after delay of about one year. The cause of the delay as explained was that the partnership deed was signed by all the partners on 22-3-1962, which was, along with other necessary papers, handed over to their counsel for being filed in the ITO, but due to lapse of memory, the counsel forgot to file the necessary papers before the ITO. The said explanation was supported by an affidavit of the counsel himself, who very much regretted the lapse on his part and pleaded for condonation of delay. After recording evidence on the point, the ITO refused registration. On appeal, the AAC found that the assessee was a firm of standing and repute, that it had been granted registration every year, and it had complied with the requirements of the department on due dates every year, and, therefore, held that this was a fit case for condonation of delay. Accordingly, it set aside the order of the ITO and directed him to register the firm. The Tribunal agreed with the findings of the AAC and further on the findings that the counsel had not committed any such default in the past, that the partners of the firm were under the bona fide belief that the requirements of obtaining registration would be complied with by the counsel within the statutory time limit, and that there was no evidence that the counsel…

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