TaxTMI 
TaxTMI 
1985 (7) TMI 54
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....of the case are far from clear, but we think the referred question can be answered as it is without asking for any further statement. According to the Income-tax Officer's order dated December 31, 1973, the declaration under section 184(7) was filed in the office on January 5, 1972. According to the Income-tax Officer, this was belated as it was filed after the period allowed by proviso (ii) to section 184(7). The Income-tax Officer gave show-cause notice as to why continuation of registration be not refused. In reply to this, the assessee claimed that the facts mentioned in the notice were wrong and it denied that Form No. 12 was filed late. The assessee's letter being vague about the actual filing of Form No. 12, the assessee was specific....
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....order rejecting a declaration filed in Form No. 12 for extending the registration on the ground that it is belated is appealable to the Appellate Assistant Commissioner under section 246. He has pointed out that in some cases, it has been held to be appealable under section 246(c) and in some cases under section 246(j). The only exception is in the case of the Orissa High Court, which held that the appeal does not lie even after the amendment in 1971 under section 246(j). The judgment of the Orissa High Court is CIT v. Pohop Singh Rice, Mill [1971] 132 ITR 390. The judgments which have held that an appeal lies are numerous, but a reference need be made to Addl. CIT v. Chekka Ayyanna [1977] 106 ITR 313, decided by the Andhra Pradesh High ....
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....ion of the registration or refusal to extend the registration means that the status under which the assessee is to be assessed is altered from that of a registered firm to that of an unregistered firm. Section 246(c) of the Act provides for an appeal to the Appellate Assistant Commissioner on various grounds, one of which is where the assessee objects to the status under which he is assessed. The objection of the assessee in the appeal was that it should be assessed in the status of a registered firm and not in that of an unregistered firm. Learned counsel for the Department has urged that this is not a question of status because the status is the same, i.e., a firm ; the only question is of registration. But, we think, the word " status " ....
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....sections (1) and (2) of section 185 deal with the procedure to be followed when an application for registration is to be dealt with. But sub-section (3) of section 185 deals with the procedure to be followed when a declaration is furnished under section 184(7). What then does the Income-tax Officer have to do when he gets a declaration under section 184(7)? He has either to place the same on record and extend the registration or he has to give a notice to the assessee under sub-section (3) stating that the application is not in order. He has to intimate the defect to the firm and give it an opportunity to rectify the same within a period of one month. How can a defect of limitation be rectified? Obviously, if the application is clearly b....
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....7). In actual effect, it is an order passed under section 185(3) on a defective application. The formal requirements are contained in section 184, but the procedure to be followed on receipt of the application is contained in section 185. When an order is passed under section 185(3) refusing to extend the registration of the firm in the relevant assessment year on the ground that the declaration is not in order, then the order becomes appealable under section 246(j). We do not see any reason why in this particular case the appeal should not lie. In this connection, it has been urged by learned counsel for the Department that there was no defect in the declaration as such and the only defect was in the late filing of the declaration. It i....
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....me or whether the time should be extended raises questions relating to the form being in order or not in order. As observed already, if the form is not in order according to the Income-tax Officer and the time is also not extended, he can say that the firm is to be treated as an unregistered firm. This order becomes appealable under section 246(j) or 246(c). We do not think that the words " considers that the declaration furnished by a firm in pursuance of sub-section (7) of section 184 is not in order " should be limited only to the case where there is a defect in the form, and are not to apply when the form is filed late. We can draw a parallel where appeals are filed before civil courts. If the appeal is filed beyond time, the court w....