Law: Income Tax Act, 1961

Section: 256,271(1)(a)

Income-tax----Penalty--Reference---Delay in filing returns--Finding by Tribunal that there was reasonable cause for delay---Finding of fact---Penalty could not be imposed---Indian Income Tax Act, 1961, Ss. 256 & 271(1)(a). Held, that the Tribunal had found that there was no conscious or deliberate disregard of the statutory obligation on the part of the assessee in submitting the return, that the assessee had not filed the return on the due date because he had suffered a shock on account of his wifes death and that, therefore, the assessee had reasonable cause for not filing the return on the due date. This was a finding of fact which could not be disturbed. On the facts and in the circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied under section 271(1)(a) of the Income Tax Act, 1961, for the assessment year 1970-71. CIT (Addl.) v. 1. M. Patel & Co. (1992) 196 ITR 297 (SC) and CIT (Addl.) v. I. M. Patel & Co.(1977) 107 ITR 214 (Guj.) ref. JUDGMENT K. A. SWAMI, C. J.---The following question has been referred for our decision: "Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied under section 271(1)(a) for the assessment year 1970-71?" The return ought to have been filed on August 16, 1970, for the assessment year 1970-71; whereas it was filed on December 30, 1972. The assessee applied for extension of time for filing the return. The Income-tax Officer granted time till November 15, 1970. However, the assessee filed the return as pointed out above, only on December 30, 1972. Therefore, the Income-tax Officer levied the penalty on accepting the explanation for the period up to June 30, 1971, for the period from July 1, 1971, to December 30, 1972, for the delayed filing of the return. Whereas in the appeal, the Appellate Assistant Commissioner found that the delay for the period from July 1, 1971, to December 31, 1971, has been properly explained. Therefore, he levied the penalty for the belated filing of return only for the period from January 1, 1972, to December 30, 1972. When the matter was carried to the Tribunal by the assessee…

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