Reasonable cause for delayed return filing treated as a finding of fact, sustaining deletion of penalty.

Penalty for delay in filing the return was upheld as deleted because the Tribunal found reasonable cause on the facts, including the assessee's inability to finalise the firm's accounts, dependence on munims, steps taken to replace them, and the fact that it was the first year of account. That finding was treated as a pure finding of fact and, on that basis, no question of law arose for reference. The question referred was therefore declined to be answered.

---

---

Issues: Whether the Tribunal was justified in deleting the penalty levied for delay in filing the return.

Analysis: The assessee's delay was found to have been caused by the inability to finalise the accounts of the firm in which he was a partner, the dependence on munims, the steps taken to change them, and the fact that it was his first year of account. On those facts, the Tribunal's finding of reasonable cause was treated as a pure finding of fact. Such a finding did not give rise to any question of law for reference.

Conclusion: The deletion of penalty was sustained and the question referred was declined to be answered.

---