Penalty for late return filing cannot stand once delay interest is charged and paid under the income tax law.

Penalty for late filing of return was held unsustainable where interest for delay had already been levied and paid under section 139(8). On that governing principle, the assessee's explanation for the delayed return did not require further examination, and the penalty under section 271(1)(a) was cancelled.

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Issues: Whether penalty for late filing of return under section 271(1)(a) of the Income-tax Act was sustainable when interest under section 139(8) had been charged and paid.

Analysis: The return was filed long after the due date, but the record showed that interest under section 139(8) had been levied and paid. In view of the governing principle that once such interest stands charged, the penalty for delay cannot be sustained, the assessee's explanation for delay did not require further examination.

Conclusion: The penalty under section 271(1)(a) was cancelled and the assessee succeeded on the penalty issue.

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