Circular No. 99

What this is

Circular No. 99 was issued by the Central Board of Direct Taxes on 21 December 1972. Its subject is New Form Nos. 11, 11A and 12 incorporating provisions of Explanation inserted by Taxation Laws (Amendment) Act, 1970 not to be insisted upon for assessment years 1971-72 and 1972-73 but firms be allowed opportunity to file application in new forms.

This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.

What it does

Extends to assessment year 1972-73 the relief given by circular No. 70 dated 11 December 1971 for assessment year 1971-72. Under that circular, where a firm applied for fresh registration, continuation or renewal in the old Form No. 11, Form No. 11A or Form No. 12, the Income-tax Officer was to give it an opportunity to file the application in the revised forms within one month of his intimation that the revised form was needed, and to dispose of the revised application on merits. The same course is now to be followed for applications filed on the old forms for assessment year 1972-73.

Why it was issued

Fresh representations had been received that the new forms were not available in certain areas and assessees had to use the existing forms for assessment year 1972-73 as well.

Who it reaches

• Firms that applied for registration or continuation on the old Form Nos. 11, 11A and 12 for assessment year 1972-73
• Income-tax Officers processing registration applications
• Firms whose registration would otherwise have been refused on a formal defect

The instrument, as the Board published it

New Form Nos. 11, 11A and 12 incorporating provisions of Explanation inserted by Taxation Laws (Amendment) Act, 1970 not to be insisted upon for assessment years 1971-72 and 1972-73 but firms be allowed opportunity to file application in new forms

1. Board had vide their Circular No. 70 [F. No. 210/33/71-IT(A-II)], dated 11-12-1971 [ Clarification 1] made a provision to the effect that where applications for fresh registration, continua­tion or renewal of registration in the old Form Nos. 11, 11A and 12 were filed, the Income-tax Officer should allow the firm concerned an opportunity of filing the application in the revised forms within a period of one month from the date of intimation from the Income-tax Officer regarding the necessity of filing the application in the revised form. If such revised application is filed, the same should be disposed of on merits. This was ap­plicable for the assessment year 1971-72 only.
2. Fresh representations have been received to the effect that the new forms were not available in certain areas and the asses­sees had to file the applications on the existing forms for the assessment year 1972-73 also.
3. It has been decided by the Board that in order to remove hardship in such cases, the instructions contained in the Board’s Circular No. 70, dated 11-12-1971 are to be extended so as to cover the assessment year 1972-73 as well.
Circular: No. 99 [F. No. 210/24/72-IT(A-II)], dated 21-12-1972.

What to watch

• The one-month period runs from the Income-tax Officer's intimation, not from the original filing; missing it loses the benefit.
• It saves only the form used, and the revised application is still decided on merits.
• The relief is confined to assessment years 1971-72 and 1972-73 and to the three forms named.
• It extends circular No. 70 dated 11 December 1971, which carries the substance of the concession.
• The registration scheme for firms these forms belonged to has since been replaced.

Where you meet it

Only in an old registration matter where a firm's application for those years was made on a superseded form.

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