Late return filing penalty not leviable where full tax was already paid through advance tax or tax deduction at source.

Penalty for late filing was held not leviable where the assessee had already discharged the full tax liability through advance tax or tax deduction at source and the default was limited to delay in furnishing the return. The governing position was that, in those circumstances, section 271(1)(a) penalty could not be sustained merely for belated filing when tax due had been paid in full. The Tribunal was therefore justified in deleting the penalty.

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Issues: Whether penalty under section 271(1)(a) of the Income-tax Act, 1961 was leviable where the entire tax had already been paid by advance tax or deduction at source and the default was confined to delay in filing the return.

Analysis: The assessee had paid the full tax liability through advance tax or tax deduction at source. The delay concerned only the filing of the return, and the governing legal position treated such circumstances as relevant to the levy of penalty for late filing.

Conclusion: The penalty was not leviable and the Tribunal was justified in deleting it.

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