Reasonable cause for delayed return filing defeated penalty where illness and death explained the filing delay.

Penalty for belated filing of a return under section 271(1)(a) was treated as unsustainable where the record showed reasonable cause for the delay. The show-cause noticee died before giving an explanation, and his widow stated that he had suffered from serious heart trouble during the relevant period. The material also indicated deteriorating health and death shortly afterwards. On these facts, the delay could not be characterised as one without reasonable cause, and the penalty was cancelled in favour of the assessee.

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Issues: Whether the penalty imposed for belated filing of the return under section 271(1)(a) of the Income-tax Act, 1961 was sustainable in the absence of reasonable cause.

Analysis: The return was filed after the due date, but the person to whom the show-cause notice had been issued died before offering an explanation. His widow stated that he had been suffering from serious heart trouble during the relevant period, and the material on record indicated that his health had deteriorated and that he died shortly thereafter. In these circumstances, the delay in filing the return could not be treated as one for which no reasonable cause existed.

Conclusion: The penalty was not sustainable and was cancelled in favour of the assessee.

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