Condonation of delay in registration matters is appealable when sufficient cause is shown, and relief may be sustained.

An appeal lies against an order rejecting, on limitation grounds, an application for registration or continuation of registration where the applicant seeks condonation of delay on the basis of sufficient cause. Applying the Supreme Court's settled position, the High Court treated the appellate order granting condonation of delay and continuation of registration as legally sustainable and answered the reference in favour of the assessee and against the Revenue.

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Issues: Whether an appeal lay against an order refusing to condone delay in filing an application for continuation of registration under section 184(7) of the Income-tax Act, 1961, and whether the Tribunal was right in holding the Appellate Assistant Commissioner to be wrong in granting relief.

Analysis: The question was answered by following the Supreme Court's settled position that an appeal is maintainable from an order rejecting an application for registration or continuation of registration filed beyond time on the ground that sufficient cause was not shown for the delay. On that basis, the appellate order granting condonation of delay and continuation of registration was treated as legally sustainable.

Conclusion: The reference was answered in the negative, in favour of the assessee and against the Revenue.

Ratio Decidendi: An appeal lies against an order rejecting, on limitation grounds, an application for registration or continuation of registration where the applicant seeks condonation of delay on the basis of sufficient cause.

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