JUDGMENT - M. C. CHAGLA, C. J.

This is not the first instance in which the Tax-ng Department has insisted on adherence to the letter of the law and overlooking the substance. But in this case it has excelled even itself. We are concerned with a question of registration and Mr. Joshis contention is that S. 28A is a technical sec-:ion. it must be construed technically, it must be administered technically, irrespective of the injustice it may do. We realise that the Income-tax Act is a technical Act and questions of equity cannot be incorporated in construing the provisions of the law But even the Income-tax Act must be construed ac cording to some principles of commonsense. Even the Income-tax Act must be construed so that the | Court, as far as it can possibly do so, construe a section in favour of the assessee and against the Department where in so construing it does not deprive the Department of revenue and it saves the assessee from a palpable injustice.

(2) Now the facts are that the assessee firm sought registration and it was denied registration by all the three authorities - the I.T.O. the A.C.C. and the Tribunal. It was in existence and register ed under the Indian Income-tax

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