Late return before assessment under Super Profits Tax law did not by itself attract penalty without clear statutory wording.

A return filed after the original time limit but before assessment under section 6 of the Super Profits Tax Act, 1963 could still be accepted for assessment, and section 10 did not clearly create penalty liability for late filing in the absence of express words. Because the assessee had in fact furnished the return before assessment and the assessment proceeded on that basis, the court held that mere delay beyond the prescribed period did not justify penalty. The penalty notice was therefore unsustainable and the assessee succeeded.

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Issues: Whether, under section 6 of the Super Profits Tax Act, 1963, a return filed after the prescribed time but before assessment could still preclude penalty under section 10 for failure to furnish the return within time.

Analysis: Section 6(3) permitted an assessee who had not furnished a return during the time allowed, or who discovered an omission or wrong statement, to furnish a return or revised return at any time before assessment was made. The penal provision in section 10 spoke of failure to furnish the return required under section 6, but unlike the corresponding provisions of the Income-tax Act, 1961, it did not expressly provide for penalty where the return was filed late though before assessment. In the absence of clear words creating such liability, no penalty could be imposed merely because the return was not filed within the original time limit, when the return was in fact filed and the assessment completed on that basis.

Conclusion: The impugned penalty notice was unsustainable and the finding was in favour of the assessee.

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