Condonation of delay in firm registration form filing granted where the assessee acted under bona fide legal advice.

Delay in filing Form No. 11 for firm registration was treated as condonable where the assessee filed it with the return under a bona fide belief, based on wrong legal advice, that this was the correct procedure. The Tribunal held that such good-faith error should not deprive the assessee of the statutory benefit. The delay was condoned, the lower orders were set aside, and the matter was remanded to the Income-tax Officer for decision on merits in accordance with law.

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Issues: Whether the delay in filing Form No. 11 for registration of the firm was liable to be condoned and the matter reconsidered on merits.

Analysis: The application for registration was filed along with the return after the prescribed time, and the explanation was that the assessee acted under a bona fide impression and on wrong legal advice. The Tribunal accepted that such delay could occur where the assessee believed in good faith that the form was to be filed with the return, and held that the assessee should not be denied the statutory benefit on that footing.

Conclusion: The delay was directed to be condoned, the orders of the lower authorities were set aside, and the matter was remanded to the Income-tax Officer for disposal on merits in accordance with law.

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