TaxTMI 
TaxTMI 
1977 (6) TMI 44
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.... year under consideration, the assessee firm filed an application in Form No. 12 for continuation of registration under s. 187(7) of the IT Act, 1961. The ITO held as follows: (i) That since the assessee firm was treated as unregistered firm in the immediately preceding year i.e., the asst. yr. 1971-72, it should have filed an application in Form No. 11 for grant of registration for the asst. yr. 1972-73. (ii) That since the assessment for the assessment year under consideration was completed under s. 144 for non-compliance with the notice under s. 142(1), the assessee was not entitled to registration. (iii) That the assessee had failed to prove the distribution of profits amongst the partners in accordance with the terms of the partners....
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.... was on the part of the appellant firm, a failure as mentioned in s. 144 namely, the non-compliance with the terms of a notice issued by the ITO under sub-s. (1) of s. 142, the ITO, was fully justified in refusing to register the firm on the basis of the declaration filed by the latter in form No. 12. The refusal of registration by the ITO to the appellant firm is, therefore, in accordance with the provisions of s. 185(5) of the IT Act, and I, therefore, decline to interfere". 5. Aggrieved by the order of the AAC, the assessee has filed the present appeal. 6. After going through the record and hearing the Representatives of the parties, we are inclined to accept this appeal. 7. The first question for consideration is whether the assessee....
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.... that the assessee filed the declaration in Form 12 within the time allowed by law. In these circumstances, the assessee was entitled to continuation of registration under s. 184(7) of the IT Act, 1961. 8. The second question for consideration is whether the ITO could refuse registration to the assessee firm under s. 185(5). This section reads as follows: "Notwithstanding anything contained in this section where, in respect of any assessment year there is, on the part of a firm, any such failure as is mentioned in s. 144, the ITO may refuse to register the firm for the assessment year." The condition of Representative of the assessee before us is that this being a case of "continuation of registration", the ITO could, if at all, resort t....