Strict construction of penalty provisions bars surcharge for mere delayed return filing under the Companies (Profits) Surtax Act.

Penalty under section 9 of the Companies (Profits) Surtax Act, 1964 is confined to the defaults expressly stated in the provision, namely failure to furnish the return, failure to produce accounts or documents, concealment of chargeable profits, or furnishing inaccurate particulars. Mere delay in filing a return, where the return is ultimately furnished under section 5(2), is not treated as equivalent to failure to furnish the return. Applying strict construction of penal provisions in taxing statutes, the omission of any express reference to delayed filing is decisive. The effect is that delayed filing by itself does not attract penalty under section 9.

---

---

Issues: Whether penalty under section 9 of the Companies (Profits) Surtax Act, 1964 is leviable for delay in filing the return when the return is ultimately filed under section 5(2) of the Act.

Analysis: Section 9 is confined to failure to furnish the return required under section 5, failure to produce accounts or documents under section 6(1), concealment of chargeable profits, or furnishing inaccurate particulars. The provision does not expressly create a penalty for mere delay in furnishing the return. Applying the settled rule that nothing can be added to or read into a taxing provision unless the statute clearly so provides, the omission of any express reference to delayed filing is significant. The surrounding penal provisions in sections 20, 21 and 22 reinforce that where the legislature intended to penalise delay or related defaults, it did so expressly.

Conclusion: Penalty is not leviable under section 9 for delayed filing of the return if the return has been furnished under section 5(2), because the section penalises failure to furnish the return and not mere delay.

Final Conclusion: The reference was answered in favour of the assessee, and the Revenue's contention that delayed filing by itself attracts penalty was rejected.

Ratio Decidendi: A penal provision in a taxing statute must be construed strictly, and in the absence of express language, delay in filing a return cannot be treated as equivalent to failure to furnish the return for imposing penalty.

---