https://www.taxtmi.com/caselaws?id=24786 Penalty under Section 271(1)(a) of the Income-tax Act, 1961 cannot be sustained where interest has been charged under clause (iii) of the proviso to Section 139(1) for delayed filing. The governing principle applied was that charging interest for the delay reflects acceptance of sufficient cause for the late return, and the Revenue must show that the assessing authority acted arbitrarily or contrary to the statutory procedure. In the absence of such proof, once interest is levied for the delay, the foundation for penalty does not survive. The issue was answered in favour of the assessee and against the Revenue. en-us Mon, 20 Jun 1988 00:00:00 +0530 Fri, 22 Jan 2010 13:34:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24786 Penalty under Section 271(1)(a) of the Income-tax Act, 1961 cannot be sustained where interest has been charged under clause (iii) of the proviso to Section 139(1) for delayed filing. The governing principle applied was that charging interest for the delay reflects acceptance of sufficient cause for the late return, and the Revenue must show that the assessing authority acted arbitrarily or contrary to the statutory procedure. In the absence of such proof, once interest is levied for the delay, the foundation for penalty does not survive. The issue was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Mon, 20 Jun 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24786