Deb, J. - (1.) The following question is involved in this reference under Section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the declaration made by the assessee under the provisions of Section 184(7) on February 11, 1964, when the return of income for the assessment year 1963-64 had been filed on January 25, 1964, was not within the time permitted under the statute and whether the Tribunal was further right in holding that the assessee was not entitled to claim the relaxation permitted under the Central Board of Direct Taxes Circular No. 3P (XXV-22 of 1964) dated July 29, 1964 ?"
(2.) The assessment year is 1963-64. The assessee is a firm. An application for registration was made in the assessment year 1962-63. During the pendency of the said application the firm filed its return of income on January 25, 1964, for the assessment year 1963-64. Thereafter, on February 2, 1964, the firm furnished the declaration under Section 184(7)(ii) of the Income-tax Act, 1961.
(3.) On July 29, 1964, the Central Board of Direct Taxes issued the above circular. On July 7, 1966, the application for registration of the firm for the assessment year 1962-63 was rejected. Accordingly, the Income-tax Officer has rejected the firm's application, under Section 184(7) of the Act, for renewal of registration for the assessment year 1963-64. This order was made by the Income-tax Officer in 1968, and it has been set aside on appeal by the Appellate Assistant Commissioner, but the Appellate Tribunal has allowed the appeal filed by the department and has restored the order of the Income-tax Officer.;