Law:

Section:

Section 271(1)(a) , read with section 139(1), of Income-tax Act, 1961 - Penalty - For late filing of return - Assessment year 1963-64 - For relevant assessment year, assessee was given extension of time till 30-9-1964 to file return - Assessee, however, filed return on 23-5-1967 - ITO, thus, charged penal interest under section 139(1)(b)(iii) - ITO also issued notice under section 271 seeking to impose penalty for delay in filing return - Whether proceeding in which interest is to be paid under section 139 proviso (iii) is different from penalty proceeding under section 271 - Held, yes - Whether, therefore, when assessee failed to file return even within extended period of time, notice issued under section 271 could not be regarded as without jurisdiction or prima facie invalid, even though penal interest under section 139(1)(b)(iii) had already been levied from assessee - Held, yes FACTS On the application in Form No. VI for extension of the period to file return for the assessment year 1963-64, the petitioner was given extension till 30-9-1964 as prayed for. The petitioner however filed the return on 23-5-1967. Because of the alleged default for not filing the return within the time, the ITO charged penal interest at the rate of 6 per cent under section 139 (1)(b)( iii). Therefore the ITO issued a notice under section 274, read with section 271 calling upon the petitioner to show cause why an order imposing a penalty should not be made, for the petitioner without reasonable cause failed to furnish the return which the petitioner was required to furnish by a notice given under section 22(1)/22(2)/34 of the 1922 Act, or which the petitioner was required to furnish under section 139(1) or by a notice given under section 139(2)/148 of the 1961 Act, or have without reasonable cause failed to furnish it within the time allowed and in the manner required by the said section 139(1) or by another notice asking the petitioner why a penalty should not be imposed for failure to pay the advance tax as required under the law. On writ: HELD It is quite clear that under section 271 of the 1961 Act the penalty proceeding can be initiated on the petitioner's failure to file…

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