(1)If for reasons, to be recorded in writing :-(a)the Superintendent of Taxes is not satisfied that the applicant for Form XXVI made bonafide use of such forms previously issued to him or that his requirement of such forms as applied for is bonafide, he may reject the application.(b)The Superintendent of Taxes is not satisfied that the applicant's requirement of Form XXVI in such number as he has applied for is bonafide, the Superintendent of Taxes may issue such forms in such lesser numbers as in his opinion would satisfy the reasonable requirement of the applicant.(2)If the applicant has at the time of making the application for Form XXVI -(a)failed to comply with an order demanding security from him under section 20 of the Act, or(b)defaulted in furnishing any return or returns together with receipted challan or challans showing payment of tax due from him according to such return or returns for furnishing of which the prescribed date has already expired, the Superintendent of Taxes shall reject the application.(3)For any breach of the provisions contained in Rule 52 by a dealer, the Superintendent of Taxes may reject the application for Form XXVI made by such dealer.
