Reasonable cause for late return filing accepted where partnership income was unsettled and extension was sought.

Delay in filing an income-tax return was treated as supported by reasonable cause where the assessee's share of partnership profits had not been ascertained by the due date and an extension request in Form No. 6 had been made without any shown reply. In the absence of a specific finding rejecting these facts, the explanation for late filing was accepted and the penalty for default in filing the return was held not sustainable.

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Issues: Whether the assessee had reasonable cause for the delay in filing the return so as to avoid penalty under section 271(1)(a) of the Income-tax Act, 1961.

Analysis: The return was filed after the due date, but the assessee's share of profits from the partnership firm had not been ascertained when the individual return became due. The assessee had also applied for extension in Form No. 6 and no reply was shown to have been received. In the absence of a specific finding negating these facts, the delay was held to be supported by reasonable cause.

Conclusion: The assessee's explanation for the delay was accepted, and the penalty under section 271(1)(a) was not sustainable.

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