Late return filing penalty depends on reasonable cause, and a return below the taxable limit does not automatically avoid liability.

Delay in filing an income-tax return can attract penalty where the assessee fails to establish reasonable cause; once the delay is admitted, the explanation must prima facie show why it was reasonable, and the Revenue need not prove absence of excuse because the relevant facts are within the assessee's knowledge. The provision addresses late filing, not concealment or inaccurate particulars, so mens rea is not in issue. A vague or inadequate explanation will not suffice. Filing an original return below the taxable limit does not by itself avoid penalty where the return was filed late.

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Issues: Whether penalty under section 271(1)(a) of the Income-tax Act, 1961 was exigible for delayed filing of return where the assessee failed to establish a reasonable cause, and whether filing a return below the taxable limit avoided liability to penalty.

Analysis: For default under section 271(1)(a), once delay in filing the return is admitted, the assessee must explain the cause for the delay and prima facie satisfy the authorities that it was reasonable. The Revenue is not required to prove absence of reasonable cause, as the facts relating to delay are especially within the assessee's knowledge. The provision is concerned with delay in filing and not with concealment or inaccurate particulars, so mens rea is not in issue. On the facts, the explanation offered for delay was found vague and inadequate, and the finding of fact was that the cause shown was not reasonable. The fact that an original return was below the exemption limit did not absolve liability where the assessee had in fact filed a return and then delayed doing so beyond time.

Conclusion: Penalty under section 271(1)(a) was rightly upheld, and the assessee's challenge failed.

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