https://www.taxtmi.com/caselaws?id=285376 Penalty under section 28(1)(a) of the Income-tax Act, 1922 requires the department to independently establish that the assessee failed to furnish the return without reasonable cause; rejection of an application under section 27 does not, by itself, satisfy that statutory test. The analysis also notes that relevant facts such as illness and inability to hand over accounts must be considered in deciding default, while matters like the regularity of accounts or alleged mala fides are extraneous to the penalty enquiry. The stated position is that penalty cannot stand unless the penalty provision is separately and properly applied on its own requirements. en-us Thu, 01 Apr 1965 00:00:00 +0530 Thu, 09 Jan 2020 13:11:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285376 Penalty under section 28(1)(a) of the Income-tax Act, 1922 requires the department to independently establish that the assessee failed to furnish the return without reasonable cause; rejection of an application under section 27 does not, by itself, satisfy that statutory test. The analysis also notes that relevant facts such as illness and inability to hand over accounts must be considered in deciding default, while matters like the regularity of accounts or alleged mala fides are extraneous to the penalty enquiry. The stated position is that penalty cannot stand unless the penalty provision is separately and properly applied on its own requirements. Case-Laws Indian Laws Thu, 01 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285376