1981 (11) TMI 91

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....yrs. 1976-77 and 1977-78. 2. The returns were due on31st July, 1976and31st July, 1978for the asst. yrs. 1976-77 and 1977-78 respectively. They were however, filed on9th March, 1977and16th Feb., 1978respectively. The notice to show cause why penalty for delay in filing of the returns should not be levied was issued in each of the years but the assessee did not reply. The ITO, accordingly, levied....

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....cious disregard of law by the assessee. The ld. AAC observed that it was not the appellant's case that Shri Lal was authorised by the assessee for his tax affairs. This is clearly wrong because we were informed that the returns itself had been filed by Shri Lal on behalf of the assessee. The AAC further observed that no application for extension was filed by the appellant, if the delay was on acco....

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.... with the ld. counsel for the assessee that the AAC was wrong in holding that assessee must apply for extension of time because failure to apply for extension of time does not debar the assessee from proving reasonable cause. The application for extension of time may be contemporaneous evidence of the conduct of the assessee but it is not conclusive either way. The AAC was, therefore, wrong in lay....