Law:

Section:

Section 271(1)(a) of the Income-tax Act, 1961 – Penalty – For late filing of return – Assessment year 1958-59 – Whether department, in course of any proceeding under Act, in order to levy penalty, need not prove beyond reasonable doubt, negatively, that assessee had, without reasonable cause, failed to furnish return of total income which he was required to furnish – Held, yes – Ground for not furnishing return within time allowed was not disclosed by assessee and said ground was within his special knowledge – ITO imposed penalty under section 271(1)(a) – Whether, on facts, ITO could reasonably presume that assessee had no reasonable ground of his failure to furnish return within time or ground if disclosed would show that it was unreasonable – Held, yes – Whether, thus, initial burden of establishing case had been discharged by department by aforesaid presumption that arose against assessee, and burden then shifted to assessee to rebut it but he failed to discharge it – Held, yes – Whether, therefore, penalty proceedings under section 271(1)(a) were legally initiated against assessee and penalty was validly imposed – Held, yes Section 260, read with section 256, of the Income-tax Act, 1961 – Decision of High Court/Supreme Court on case stated - Assessment year 1958-59 – Whether where question of burden of proof was not specifically raised in application made by assessee for reference, but it appeared from order of Tribunal that said point was raised before him and he has considered it and given a finding on it, said point arose out of order of Tribunal and was question of law – Held, yes FACTS The assessee failed to submit the return on the due date. The ITO issued a notice under section 274, read with section 271, requiring the assessee to show cause why penalty should not be imposed for non-submission of the return within time. The assessee did not comply with the notice. He, however, filed an application and raised two contentions in it (a) that only proceeding under section 274, read with section 271, was not a valid initiation of the proceeding in the eye of law; and (b) that the assessment having been completed under the 1922 Act, penalty proceedings…

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