Law:

Section:

Section 271(1)(a) of the Income-tax Act, 1961 - Penalty - For late filing of return - Assessment year 1963-64 - For relevant assessment year, assessee filed her return of income late - In assessment order ITO held that income in question was really that of husband of assessee and assessee was virtually a benamidar but nonetheless he chose to assess assessee and not her husband - ITO also imposed penalty on assessee under section 271(1)(a) - Tribunal upheld levy of penalty - On instant reference, it was seen that assessment order was treated as substantive assessment order and infact some relief was granted to assessee in appeal - Whether since no substantive assessment was made in hands of any other person, assessment made in pursuance of return filed by assessee was substantive assessment - Held, yes - Whether, in such circumstances, section 271(1)(a) was clearly applicable, and therefore, assessee was liable to levy of penalty - Held, yes FACTS For the relevant assessment year the assessee filed her return of income late. During the course of the assessment proceedings, the ITO issued notice to the assessee requiring to show cause why penalty under section 271(1)(a) should not be imposed for the delay in filing the return. After hearing the assessee, the ITO imposed a penalty. The assessee went up in appeal and then in further appeal to the Tribunal but failed. On reference : HELD Section 271(1)(a) requires that the ITO to be satisfied that any person has without any reasonable cause failed to furnish the total income which he was required to furnish under sub-section (1) of section 139. In the instant case, the assessee was the person who could be said to have been required to file the return under section 139(1) because she did in fact furnish the return which was taken as the basis of the assessment. She was hence the assessee who was undoubtedly late in filing the return. It was true that in the assessment order the ITO held that the income in question was really that of the husband of the assessee and the assessee was virtually a benamidar. But nonetheless he chose to assess the assessee and not the husband. Though the assessment was protective, it…

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