Law:

Section:

Section 271(1)(a) of the Income-tax Act, 1961 - Penalty - For late filing of return - Assessment year 1963-64 - Whether where assessee failed to furnish return of income as required under section 139(1) but filed same under section 139(4), authorities would have jurisdiction to issue notice under section 271 - Held, yes Section 139, of the Income-tax Act, 1961 - Return of income - General - Assessment year 1963-64 - Whether provision of section 139(4) simply gives a statutory period for filing a return to an assessee who has not availed himself of provision under sub-sections (1) or (2) of section 139 but defaulter must pay interest at rate and for period as provided in proviso (iii) to section 139(1) - Held yes - Whether section 139(4) has nothing to do with an application for extension of time to furnish return by assessee or exercise of discretionary power for granting or refusing same by ITO - Held, yes Interpretation of Statutes: -Rule of beneficial construction. FACTS The assessee failed to furnish its return within the time allowed under section 139(1) but filed the same under section 139(4). Accordingly, the ITO imposed interest under section 139(1)(b), proviso to clause (iii) and also initiated penalty proceedings by issuing notices under section 271. On writ challenging the said notices the assessee contended that if return was filed before completion of the assessment then it could not be said that it was filed out of time and that if interest was levied under section 139 penalty proceedings under section 271 could not be initiated as it would amount to double jeopardy. However, the Trial Judge dismissed the said writ petition. In the instant appeal, it was contended on behalf of the assessee that the ITO had the power and the discretion to extend the date for furnishing the return up to any time beyond the dates mentioned in clauses. (i) and (ii ) of the proviso to section 139(1); that in the event, he extended the date for furnishing the return, the interest at 9 per cent from 1st of October or 1 st of January, as the case may be, up to the date of the furnishing of the return should be charged, that the ITO had no competence, jurisdiction and/or…

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