Reasonable cause for late return filing defeated penalty where delay stemmed from difficulty tracing records after retirement.

Penalty for belated filing under section 271(1)(a) was held unjustified where the assessee explained that, after retirement, he had to rely on his former office for leave-salary particulars and to trace a misplaced income-tax file. The delay was not found to reflect conscious neglect, deliberate default, or wanton disregard of the filing obligation. On those facts, the explanation was accepted as reasonable cause and the penalty was cancelled.

---

---

Issues: Whether penalty under section 271(1)(a) of the Income-tax Act, 1961 was leviable for belated filing of returns for the assessment years 1970-71 and 1971-72.

Analysis: The returns were filed after a substantial delay following notice under section 148. The explanation accepted was that the assessee, having retired from service, had to depend on his former office for particulars of leave salary and for tracing the income-tax file misplaced by the accountant, and that there was no material to show wanton disregard of the statutory obligation. The delay was therefore not treated as a case of conscious neglect or deliberate default, and the explanation was held to constitute reasonable cause in the circumstances.

Conclusion: Penalty under section 271(1)(a) was not justified and was cancelled.

---