Appeals allowed, penalty deleted under Income Tax Act for late filing.

The Tribunal allowed the appeals, ruling in favor of the assessee and deleting the penalty under section 271F of the Income Tax Act for the delay in filing returns for the assessment years 2007-08 to 2011-12. The Tribunal found that the delay was due to reasonable causes beyond the assessee's control, emphasizing that the penalty should not be imposed unless there is deliberate defiance of the law or contumacious conduct, which was not present in this case.

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Issues:
- Penalty under section 271F of the Income Tax Act for delay in filing returns.

Detailed Analysis:
1. The appeals were filed against the order of the Ld. CIT(A) sustaining the penalty under section 271F of the Act for the assessment years 2007-08 to 2011-12.
2. The primary contention was that the delay in filing the returns was beyond the control of the assessee due to various reasons, including the unwellness of the Chairman/Chief Promoter and reduced accounting staff.
3. The Assessing Officer issued a notice under section 271F as the returns were filed beyond the specified time in the notice issued under section 153C, leading to the penalty imposition.
4. The assessee argued that the penalty should be deleted as there was no willful default, and the delay was due to reasonable causes, such as the necessity to file multiple returns and the health issues of key personnel.
5. The assessee relied on the decision of the Hon'ble Supreme Court in Hindustan Steel Ltd. v. State of Orissa, emphasizing that the penalty imposition is not automatic and should be based on judicious exercise of discretion by the Assessing Officer.
6. The Tribunal observed that there was no deliberate attempt to file the returns belatedly, and the delay was due to reasonable causes beyond the control of the assessee.
7. Citing the Supreme Court's decision, the Tribunal held that penalty under section 271F should not be imposed unless there is deliberate defiance of the law or contumacious conduct, which was not evident in this case.
8. Consequently, the Tribunal allowed the appeals, deleting the penalty under section 271F for the delay in filing the returns for the relevant assessment years.
9. The decision was pronounced on 21st September 2016 by the Tribunal.

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