Reasonable cause for late wealth-tax return filing protected the assessee, despite no extension request.

Penalty for delayed filing of a wealth-tax return was found unsustainable where the assessee established reasonable cause for the delay. Non-receipt of account statements and a valuation report needed to prepare the return was accepted as a sufficient explanation. The absence of an application for extension of time did not remove the statutory protection once reasonable cause was shown, so cancellation of penalty under Section 18(1)(a) was upheld in favour of the assessee.

---

---

Issues: Whether penalty for delayed filing of the wealth-tax return was leviable when the assessee showed reasonable cause for the delay and had not applied for extension of time.

Analysis: The delay was explained as arising from non-receipt of necessary account statements and a valuation report, both of which were required for preparation of the return. The explanation was accepted as a reasonable cause for the late filing. The absence of an application for extension was held not to eliminate the protection available where reasonable cause for the default was otherwise established.

Conclusion: Penalty under Section 18(1)(a) was not sustainable on the facts and the cancellation of penalty was upheld in favour of the assessee.

---