Form C declaration may be accepted at appellate stage where belated filing is justified and statutory power exists
An appellate authority can accept a Form C declaration at the appellate stage where the statutory power to permit belated filing exists and sufficient cause is shown, and procedural rigidity cannot override that power. Refusal by the assessing, appellate, revisional and reviewing authorities to receive the declaration was inconsistent with that settled position. The rejection was therefore unlawful, and the matter was remitted for fresh consideration with direction to examine the declaration and grant consequential concessional tax relief if it is found genuine.
Issues: Whether Form C declaration could be accepted at the appellate stage and whether the refusal to accept it was contrary to law.
Analysis: The earlier Full Bench view recognised that the authority dealing with the matter has power to permit filing of C forms beyond the assessment stage where sufficient cause exists, and that the procedural mechanism cannot defeat the statutory power. That principle was also followed by the Supreme Court, which recognised that the appellate authority has sufficient power to receive Form C declaration even at the appellate stage. The refusal by the assessing, appellate, revisional and reviewing authorities to accept the declaration was therefore inconsistent with the settled legal position.
Conclusion: The rejection of Form C declaration was held to be unlawful, and the assessee was held entitled to have the declaration accepted and considered for concessional tax treatment.
Final Conclusion: The assessment dispute was set aside and sent back for fresh action by the assessing officer with a direction to examine the Form C declaration and grant consequential relief if it is found genuine.
Ratio Decidendi: An appellate authority can accept Form C declaration at the appellate stage where the statutory power to permit belated filing exists and sufficient cause is shown, and procedural rigidity cannot override that power.
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