Law:

Section:

Section 271(1)(a), read with section 297(2)(g), of the Income-tax Act, 1961-Penalty-For late filing of return-For assessment year 1961-62, assessee did not file its return within time allowed under Indian Income-tax Act, 1922-Thereafter notice was issued to assessee under section 148 of 1961 act but again it failed to file return within time allowed-Assessee filed belated return on 20-4-1964-ITO proceeded to impose penalty under section 271(1)(a)-Whether in view of provisions of section 297(2)(g), imposition of penalty under section 271(1)(a), read with explanation, as it stood after its retrospective amendment in 1974, was justified-Held, yes. Facts For the assessment year 1961-62, corresponding to the account year ending 31-3-1961, the asses-see did not file its return of income within the time allowed under section 22(1) of the 1922 Act. The assessee also failed to file the return within the time allowed by the notice sent to it under section 148 of the 1961 Act. As the return was filed belatedly, i.e., on 20-4-1964, the ITO imposed penalty under section 271(1)(a), rejecting the assessee's explanation. On appeal, the AAC directed the ITO that the penalty leviable should have been imposed with reference to the tax which was payable on the date of imposition of the penalty. The Tribunal, following the decision of the Calcutta High Court in CIT v. Vegetable Products Ltd. [1971] 80 ITR 14, upheld the order of the AAC. On reference, the assessee contended (i) that the return, though filed in response to notice under section 148, was a return for the assessment year 1961-62, and, therefore, any default in furnishing the return was punishable under section 28 of the 1922 Act, and (ii) that the return should have been filed before 30-7-1961 as the assessee's previous year ended on 31-3-1961 and, therefore, the default, if any, took place on 30-7-1961 and as such the assessee's case would be governed by substantive law applicable to the accounting year 1960-61. Held The Legislature by section 297(2)(g ) of the 1961 Act has specifically provided that any proceedings for imposition of penalty in respect of any assessment for the year ending on 31-3-1962 or any earlier…

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