Late return filing penalty under income-tax law survives estimated assessment; clause (a) remains applicable despite possible clause (c) arguments.

Failure to furnish a return within the time allowed under a notice issued under section 22(1) attracts penalty under section 28(1)(a) of the Income-tax Act, 1922. A later assessment on an estimated basis, or the fact that assessment proceedings were taken under section 34, does not erase the default of late filing. The penalty provisions create distinct grounds for different defaults, and the Revenue is not confined to section 28(1)(c) merely because the return was belated or the income was estimated. The commentary concludes that clause (a) remained applicable and the assessee's contrary contention failed.

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Issues: Whether penalty under section 28(1)(a) of the Income-tax Act, 1922 was leviable where the return was filed beyond the time allowed under section 22(1), although the assessment was ultimately made on an estimated basis and the assessee contended that only section 28(1)(c) could apply.

Analysis: A notice published under section 22(1) initiates the assessee's obligation to file a return within the prescribed time, and failure to do so attracts penalty under section 28(1)(a). The existence of later assessment proceedings, including assessment under section 34 or rejection of the return on merits, does not eliminate the default of late filing. The provisions in section 28 create distinct grounds of penalty for different defaults, and the Revenue is not compelled to proceed only under clause (c) merely because the return has been filed belatedly or the income has been estimated. The authorities relied on for a contrary view were confined to their own facts and did not establish that clauses (a) and (c) are mutually exclusive in the sense contended by the assessee.

Conclusion: Penalty under section 28(1)(a) was exigible, and the question was answered in the affirmative against the assessee.

Ratio Decidendi: Failure to furnish a return within the time allowed under a notice issued under section 22(1) constitutes an default attracting penalty under section 28(1)(a), and that liability is not displaced merely because the return is later assessed on estimate or the Revenue could also have invoked section 28(1)(c).

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