https://www.taxtmi.com/caselaws?id=19876 An honest and bona fide but mistaken belief, supported by surrounding facts, can constitute reasonable cause to avoid penalty for delayed return filing and for failure to furnish an income estimate. The Madras HC held that the assessee's illiteracy, entrustment of business affairs to a brother-in-law, and belief that the income belonged to that brother-in-law justified the default. On those facts, penalty under section 271(1)(a) for delayed filing was not leviable, and penalty under section 273(c) for non-furnishing of the estimate under section 212(3A) was also unsustainable. The penalties were therefore cancelled. en-us Mon, 17 Jan 1994 00:00:00 +0530 Tue, 10 Nov 2009 13:15:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19876 An honest and bona fide but mistaken belief, supported by surrounding facts, can constitute reasonable cause to avoid penalty for delayed return filing and for failure to furnish an income estimate. The Madras HC held that the assessee's illiteracy, entrustment of business affairs to a brother-in-law, and belief that the income belonged to that brother-in-law justified the default. On those facts, penalty under section 271(1)(a) for delayed filing was not leviable, and penalty under section 273(c) for non-furnishing of the estimate under section 212(3A) was also unsustainable. The penalties were therefore cancelled. Case-Laws Income Tax Mon, 17 Jan 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19876