Tax Appellate Tribunal Upholds Registration Decision for Assessment Years, Emphasizes Fairness

INCOME TAX OFFICER. Versus GIRDHARILAL.

INCOME TAX OFFICER. Versus GIRDHARILAL. - TTJ 021, 362, Issues:
1. Registration granted by AAC challenged by Revenue for asst. yrs. 1977-78 and 1979-80.

Analysis:
The Revenue appealed against the AAC's decision granting registration for the assessment years 1977-78 and 1979-80. The main contention raised by the Revenue was the non-production of evidence by the assessee regarding the filing of Form No. 11 and the partnership deed for the year 1977-78. The ITO, based on the Record Keeper's statement casting doubt on the entry in the Inward Register, concluded that the assessee did not file the required documents and thus refused registration. However, the AAC, in his order, noted that the ITO failed to disprove the facts stated by the assessee and could not establish the entry in the Inward Register as false. Citing a precedent from the Ahmedabad Bench Tribunal, the AAC ruled in favor of the assessee, stating that any doubt should benefit the assessee.

For the year 1979-80, the AAC observed that the assessment was made under section 143(1) and noted that the assessee had submitted Form No. 12 in time along with Form No. 11. The Revenue contended that evidence of filing Form No. 11 and the partnership deed should be produced. The assessee, through its representative, emphasized that the missing receipt was the reason for non-submission and argued that the department's doubt on its records should not penalize the assessee. The representative supported the AAC's decision for both years, relying on the Ahmedabad Bench decision.

The ITAT, in its analysis, referred to a case from the Ahmedabad Bench where registration was granted despite the absence of an entry in the Inward Register. In the present case, although the receipt was not available, the Inward Register showed the entry of receiving the required documents. The ITAT found the Record Keeper's explanation unconvincing and upheld the AAC's decision, emphasizing that doubts in the department's records should not penalize the assessee. The ITAT upheld the AAC's order for the year 1977-78 and supported the direction for the ITO to consider Form No. 11 for the year 1979-80. Ultimately, the departmental appeals were dismissed, affirming the AAC's decisions.