Reasonable cause for delayed return filing justified cancellation of penalty where identical facts had been accepted earlier.

Penalty for delay in filing the return under section 271(1)(a) was held unsustainable where the assessee showed reasonable cause. The delay was explained by serious disputes between the partners and the illness and death of their mother. The same explanation had already been accepted on identical facts for an earlier assessment year, and the delay in the year under appeal was no greater. On those facts, the assessee was treated as having been prevented by reasonable cause from filing the return within time, and the penalty was cancelled.

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Issues: Whether penalty levied for delay in filing the return under section 271(1)(a) of the Income-tax Act, 1961 was sustainable when the assessee claimed reasonable cause for the delay.

Analysis: The assessee filed the returns for the relevant assessment years on the same date, and the delay for the year under appeal was explained by serious disputes between the partners and the illness and death of their mother. The explanation had already been accepted as satisfactory for the earlier assessment year on identical facts, and the delay in the present year was no greater than in that year. On these facts, the assessee was held to have been prevented by reasonable cause from filing the return within the prescribed time.

Conclusion: The penalty was not sustainable and was cancelled.

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