Penalty for delayed return and tax deposit requires a finding of no reasonable cause before it can stand.

Penalty for delayed return filing and late deposit of admitted tax could not be sustained without a finding that no reasonable cause existed for the delay. Mere non-application for extension was insufficient, and the Tribunal was required to examine the assessee's explanation as well as the claim that admitted tax had later been paid with interest. Because the Tribunal, as the final fact-finding authority, had not made these findings, the matter required fresh consideration by the Tribunal.

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Issues: Whether penalty for delayed filing of return and late deposit of admitted tax was sustainable without a finding on reasonable cause and without considering the assessee's explanation and subsequent deposit of tax with interest.

Analysis: Mere failure to seek extension of time was not enough to justify penalty. A penalty order required a finding that there was no reasonable cause for the delay. The Tribunal had not examined whether the explanation for delay was adequate and had also not considered the claim that the admitted tax was deposited along with interest. As the Tribunal was the last fact-finding authority, the absence of such findings made reconsideration necessary.

Conclusion: The penalty order could not be sustained on the existing findings and the matter required fresh decision by the Tribunal.

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