https://www.taxtmi.com/caselaws?id=39855 A return filed after the time allowed under section 139(1) or 139(2) could still attract statutory interest, and that interest was treated as a liability created by the Act rather than penalty in the strict sense. The High Court maintained a distinction between charging interest for delay and initiating penalty proceedings under section 271. Filing the return before completion of assessment did not, by itself, erase the earlier default where the relevant test was whether the return had been filed within the time allowed by the Income-tax Officer. The penalty notice was therefore not without jurisdiction or prima facie invalid, and the challenge failed. en-us Mon, 07 Feb 1972 00:00:00 +0530 Tue, 20 Apr 2010 16:53:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39855 A return filed after the time allowed under section 139(1) or 139(2) could still attract statutory interest, and that interest was treated as a liability created by the Act rather than penalty in the strict sense. The High Court maintained a distinction between charging interest for delay and initiating penalty proceedings under section 271. Filing the return before completion of assessment did not, by itself, erase the earlier default where the relevant test was whether the return had been filed within the time allowed by the Income-tax Officer. The penalty notice was therefore not without jurisdiction or prima facie invalid, and the challenge failed. Case-Laws Income Tax Mon, 07 Feb 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39855