Condonation of delay for firm registration under tax law turns on factual sufficiency; a separate written prayer is not indispensable.

Delay in filing an application for registration of a firm under section 26A of the Indian Income-tax Act, 1922 was treated as a factual matter. Where the Tribunal found sufficient cause on material before it, including an affidavit explaining the delay, that finding could not be disturbed as an error of law. A separate written prayer for condonation was not indispensable, and the principles governing section 5 of the Limitation Act were distinguished because registration under section 26A concerns the genuineness of the firm rather than any vested revenue right arising from mere delay.

---

---

Issues: Whether the assessee-firm was entitled to registration under section 26A of the Indian Income-tax Act, 1922, and the relevant rules, in view of the delay in making the application for registration.

Analysis: The assessee had earlier been registered, and the later application was supported before the Tribunal by an affidavit explaining that the papers had been entrusted to the accountant for filing but could not be filed because of the serious illness of his wife. The Tribunal accepted the explanation, held that the firm was genuine, found no defect in its constitution or in the form of the application, and concluded that the delay was liable to be condoned. The High Court held that this was a finding of fact supported by material, and that no rule of law required a separate written prayer for condonation of delay in such proceedings. It further distinguished the principles applicable to section 5 of the Limitation Act, observing that registration under section 26A was intended to verify the genuineness of the firm and did not involve the accrual of any vested right in the revenue on mere delay.

Conclusion: The delay was rightly condoned and the assessee-firm was entitled to registration.

Final Conclusion: The reference was answered in favour of the assessee, and the revenue's challenge failed.

Ratio Decidendi: In proceedings for registration of a firm under section 26A of the Indian Income-tax Act, 1922, the question whether delay in filing the application should be condoned is a factual matter; where the Tribunal's finding of sufficient cause is supported by material, it cannot be disturbed as an error of law, and a separate written application for condonation is not indispensable.

---