Reasonable cause for delayed return filing based on facts did not raise a referable question of law.

The Tribunal's acceptance of the assessee's explanation for delayed filing, based on non-finalisation of share income from two firms, was treated as a factual finding of reasonable cause. On that basis, the penalty under section 271(1)(a) was deleted. The High Court held that such a conclusion, resting on appreciation of the facts and the existence of reasonable cause, did not raise any referable question of law under section 256(2) of the Income-tax Act, 1961. The application seeking a direction to state the case was therefore rejected.

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Issues: Whether the Tribunal's finding that the assessee had reasonable cause for the delayed filing of the return raised any referable question of law under section 256(2) of the Income-tax Act, 1961.

Analysis: The return was filed long after the due date and after notice under section 139(2). The assessee relied on the non-finalisation of share income from two firms as the explanation for delay. The Tribunal accepted this explanation and deleted the penalty under section 271(1)(a). The finding turned on appreciation of the facts and the existence of reasonable cause. Such a conclusion, based on the factual matrix, did not give rise to a question of law for reference.

Conclusion: No referable question of law arose; the application for direction to state the case was rejected.

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