https://www.taxtmi.com/caselaws?id=29352 In penalty proceedings under section 271(1)(a) of the Income-tax Act, 1961, the Revenue must first make a prima facie showing that the assessee failed to file the return without reasonable cause; only then does the burden shift to the assessee to explain the default. The article further notes that a penalty cannot be sustained merely because the assessment was later enhanced, including on account of valuation adjustments, if that does not itself disprove reasonable cause for the original return. On that reasoning, the penalty was treated as unjustified and the assessee succeeded. en-us Wed, 11 Feb 1981 00:00:00 +0530 Fri, 12 Mar 2010 13:19:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29352 In penalty proceedings under section 271(1)(a) of the Income-tax Act, 1961, the Revenue must first make a prima facie showing that the assessee failed to file the return without reasonable cause; only then does the burden shift to the assessee to explain the default. The article further notes that a penalty cannot be sustained merely because the assessment was later enhanced, including on account of valuation adjustments, if that does not itself disprove reasonable cause for the original return. On that reasoning, the penalty was treated as unjustified and the assessee succeeded. Case-Laws Income Tax Wed, 11 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29352