Law:

Section:

Section 271(1)(a) of the Income-tax Act, 1961 - Penalty - For late filing of return - Assessment year 1966-67 - Return under section 139(1) was due on 30-9-1966 - Notice under section 139(2) was sent by registered post on 28-4-1966 which was supposed to have been served by 4-5-1996 - First return was failed by assessee on 8-11-1966 which was signed by Accountant - On being pointed out this defect, another return was filed on 6-8-1968 signed by partner - Whether in view of fact that in earlier years returns signed by accountant had been accepted by Department, levy of penalty under section 271(1)(a) was not justified for period from date of filing original return to date of filing of revised return -Held, yes - Whether, further, since, it was clear from the stand taken by Department before AAC and Tribunal that return filed by assessee was treated as one under section 139(1), default for levy of penalty could be computed from 1-10-1966 and not from date of service of notice i.e. 4-5-1966 - Held, yes - Whether, in aforesaid circumstances, Tribunal was justified in restricting period of default under section 271(1)(a) to one month only - Held, yes FACTS The return for the relevant assessment year was due by 30-9-1966. Notice under section 139(2) was sent by registered post on 28-4-1966 which was supposed to have been served by 4-5-1966. The assessee filed its first return on 8-11-1966, which was signed by its accountant. On being pointed out this defect in the course of the assessment proceeding, another return under the signature of a partner of the firm was filed on 6-8-1968. As no valid return was filed till that date the ITO levied a penalty under section 271(1)(a) for a period of about 24 months, reckoned from the date of receipt of notice under section 139(2). On appeal, it was stated that the returns under the signature of the agent, were filed by the assessee in the earlier and subsequent years and the same were accepted by the Department, and no penal action was taken. The assessee, in these circumstances, submitted that there was no delay in filing the return, and, as such, the firm was not liable for any penalty. The AAC accepted the assessee's…

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