Penalty for delayed return filing fails where records suggest an earlier timely return and the later return was only duplicate.

Penalty for delayed filing under section 271(1)(a) of the Income-tax Act, 1961 was held unsustainable where the record indicated that a return had already been filed in time and the later return was only duplicate. The assessment file showed a notice under section 142(1), but no proceeding under section 139(2), and the issue of a notice under section 148 supported the inference that no prior section 139(2) process had been taken. As the original return was not available on the record, the uncertainty whether the earlier return was timely filed was resolved in favour of the assessee, and the penalty was cancelled.

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Issues: Whether the penalty levied for delay in filing the return under section 271(1)(a) of the Income-tax Act, 1961 was sustainable when the record indicated that a return had already been filed in time and the later return was only a duplicate.

Analysis: A notice under section 142(1) had in fact been issued, and the assessment records did not show any proceeding under section 139(2). The issue of a notice under section 148 also supported the inference that there had been no prior proceeding under section 139(2). Since the return on which the penalty was founded was no longer available on the file, the uncertainty as to whether the earlier return had been filed within time had to be resolved in favour of the assessee.

Conclusion: The penalty under section 271(1)(a) of the Income-tax Act, 1961 was not maintainable and was cancelled. The appeal was allowed.

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