Penalty for failure to file return deleted where assessed income was nil and reasonable cause was accepted.

Penalty for failure to furnish a return under section 272A(2)(e) of the Income-tax Act was deleted because the assessment order itself had determined the assessee's income at nil. On that factual basis, the omission to file the return was treated as supported by reasonable cause, so the penalty was not leviable. The appeal was therefore allowed in favour of the assessee.

---

---

Issues: Whether the penalty under section 272A(2)(e) of the Income-tax Act, 1961 was leviable on the assessee for failure to furnish the return.

Analysis: The assessment order had itself determined the assessee's income as nil. On that factual basis, the omission to file the return was held to be supported by reasonable cause, attracting deletion of the penalty.

Conclusion: The penalty under section 272A(2)(e) was deleted and the appeal was allowed in favour of the assessee.

---