Burden in late-filing penalty cases lies first on revenue to show absence of reasonable cause before shifting to taxpayer.

Penalty for late filing of a return under section 271(1)(a) arises only where the default is without reasonable cause. The revenue must first make out, at least prima facie, that the assessee failed to file the return within time without such cause; only then does the burden shift to the assessee to explain the delay. Mere late filing, or mere falsity of the assessee's explanation, is not enough by itself to establish the default. On the stated facts, no evidence beyond the delay was produced to show absence of reasonable cause, so the penalty could not be sustained.

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Issues: Whether, in penalty proceedings for late filing of a return under section 271(1)(a) of the Income-tax Act, 1961, the revenue bears the initial burden to show absence of reasonable cause, and whether the penalty could be sustained on the facts of the case.

Analysis: Penalty under section 271(1)(a) is attracted only where the default is without reasonable cause. The revenue must first establish, at least prima facie, that the assessee failed to furnish the return within time without reasonable cause; only then does the burden shift to the assessee to explain the default. Mere late filing, or mere falsity of the assessee's explanation, is not enough by itself to prove the offence. Applying that principle, no evidence beyond the delay itself was led to show absence of reasonable cause for the late filing.

Conclusion: The revenue failed to discharge the initial burden, and the penalty could not be sustained.

Ratio Decidendi: In penalty proceedings for late filing of a return, the revenue must first prove prima facie that the default was without reasonable cause; only thereafter does the burden shift to the assessee to establish reasonable cause.

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