High Court upholds penalty under section 271(1)(a) for late tax return filing

The High Court of Madhya Pradesh upheld the penalty imposed under section 271(1)(a) of the Act on the assessee for not furnishing the return of income within the allowed time. The penalty was deemed legal for a partner of a firm with income from the firm, even when a penalty was also imposed on the firm. The penalty was considered legal even if interest under the proviso to section 139(1)(iii) was charged. The penalty was upheld even if the income tax return was filed within the time allowed under section 139(4) of the Act. The assessee was ordered to pay the costs of the revenue.

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The High Court of Madhya Pradesh upheld the penalty imposed under section 271(1)(a) of the Act on the assessee for not furnishing the return of income within the allowed time. The penalty was deemed legal for a partner of a firm with income from the firm, even when a penalty was also imposed on the firm. The penalty was considered legal even if interest under the proviso to section 139(1)(iii) was charged. The penalty was upheld even if the income tax return was filed within the time allowed under section 139(4) of the Act. The assessee was ordered to pay the costs of the revenue.

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