https://www.taxtmi.com/caselaws?id=22485 A bona fide belief that no return was required can constitute reasonable cause under section 271(1)(a) when supported by material and not shown to be perverse. The Tribunal's deletion of penalty was upheld because the assessee's explanation, though rejected, was corroborated by surrounding circumstances and treated as a finding of fact. Penalty under the provision is not automatic and depends on proof of default without reasonable cause. The earlier finding in proceedings under section 271(1)(c) was also relied upon. The penalty therefore did not survive. en-us Wed, 09 Jan 1991 00:00:00 +0530 Thu, 10 Dec 2009 13:33:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22485 A bona fide belief that no return was required can constitute reasonable cause under section 271(1)(a) when supported by material and not shown to be perverse. The Tribunal's deletion of penalty was upheld because the assessee's explanation, though rejected, was corroborated by surrounding circumstances and treated as a finding of fact. Penalty under the provision is not automatic and depends on proof of default without reasonable cause. The earlier finding in proceedings under section 271(1)(c) was also relied upon. The penalty therefore did not survive. Case-Laws Income Tax Wed, 09 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22485