Penalty for delayed return filing upheld where binding High Court precedent governed section 271(1)(a) liability.

Penalty for delayed filing of a return under section 271(1)(a) of the Income-tax Act, 1961 was upheld, with the High Court noting that the controversy was covered by an earlier binding decision of the same court. The assessee's objection that there was no assessed tax for the Explanation was not accepted in the reference. The Tribunal's view restoring the penalty was affirmed, and the question was answered in favour of the Revenue and against the assessee.

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Issues: Whether the assessee was liable to penalty under section 271(1)(a) of the Income-tax Act, 1961 for delay in filing the return, notwithstanding the contention that there was no assessed tax for the purpose of the Explanation.

Analysis: The reference arose from penalty proceedings for a delay of 34 months in filing the return. The assessee's appeal had been allowed by the Appellate Assistant Commissioner, but the Tribunal restored the penalty. In the reference, the parties conceded that the controversy was covered by the binding decision of the same High Court, and the Court adopted that position in answering the question referred.

Conclusion: The Tribunal was right in holding that the assessee was liable to penalty under section 271(1)(a) of the Income-tax Act, 1961. The question was answered in the affirmative and against the assessee.

Ratio Decidendi: Where the issue is covered by an earlier binding decision of the same High Court, the assessee's liability to penalty for delayed filing of the return under section 271(1)(a) stands affirmed.

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