Penalties for late tax return filing canceled due to uncontrollable delays

The penalties imposed under section 271(1)(a) of the IT Act for delayed filing of returns were canceled by ITAT Gauhati. The delays were deemed beyond the assessee's control and not wilful default, leading to the penalties being overturned.

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The appeals were against the penalty imposed under section 271(1)(a) of the IT Act, 1961 for delayed filing of returns for the assessment years 1965-66 and 1966-67. The assessee, a registered firm, cited reasons such as Pakistani aggression, illness of a partner, and chaos in business for the delays. The penalties were imposed by the ITO but reduced by the AAC. The ITAT Gauhati canceled the penalties, stating that the delays were beyond the control of the assessee and not due to wilful default. The appeals were allowed.

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