TaxTMI 
TaxTMI 
1980 (1) TMI 117
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a penalty of Rs. 7,015 for the asst. yr. 1974-75, Rs. 294 for the asst. yr. 1975-76 and Rs. 2,030 for the asst. yr. 1976-77 computing the default from the respective due dates under s. 139(1) of IT Act, 1961 and ending with the dates of assessments. In appeal, the AAC cancelled only the penalty for asst. yr. 1975-76. There is no departmental appeal against that cancellation. The assessee appeals for the other two. 2. The assessee is a partnership consisting of mother and her five sons constituted with effect from Dec., 1970. The return upto 1974-75 had been duly filed and got assessed. Thereafter the default arose. The firm was dissolved on 31st day of March, 1976. The explanation of the assessee was that it was because of internecine qu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt of co-operation necessary for preparation and furnishing of income-tax returns is not necessary for running the business. Even if they quarrel among themselves all of them in their turn would feel only happy if the other partners carry on the business and earn profits. The quarrel is on the determination of the quantum of profits and perhaps its division. The returns are to be furnished only after the total profits are ascertained. It is there in the ascertainment that the quarrel arises in this case. So that, business is carried on is of no consequence. The fact that sales-tax statements are furnished in proper time is also of no consequence. The last profit and loss account filed before the sales-tax is for the year ended 31st March, 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at means that all the difficulties caused by this quarrel among the partners was over. One of the clause in that dissolution deed is to the effect that the first, second and fifth parties are to retire from the partnership by receiving their share of capital with profits accruing till date and not more than that. So profits have been ascertained by that time. So the delay thereafter cannot be countenanced. The dissolution was on 31st March, 1976. So it may at best require three months more to prepare and finalise the income-tax returns. By 30th June, 1976 the income-tax returns should have been prepared, finalised and furnished. Any delay thereafter in respect of the income-tax return for the asst. yr. 1974-75 is not tolerable. So the defau....