1977 (7) TMI 79

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....l, 1972. Net being satisfied with the assessee's explanation in the matter in the proceedings under s. 18(1)(a) the WTO levied the impugned penalties. The assessee (an HUF) appealed. But the AAC agreed with the WTO and confirmed the penalties. Hence these appeals by the assessee. 3. Shri P.K. Roy, authorised representative, took us through the explanation of the assessee before the authorities below in the matter. He contended that the assessee had explained the default for all the three years and had shown reasonable cause. Hence the penalties required to be cancelled. The Departmental Representative, on the other hand, relied on the orders of the authorities below and contended that this was a case where no reasonable cause worth the n....

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.... ought to have been sent well before 30th June, 1969, which was the due date and since this was not done, nothing much could be said about the application. We, however, notice that though there was no merit in much of the reasons given for the default by the assessee for this year, there was on circumstances pointed out by it, which deserved consideration. The assessee had explained that Padma Kumari Baruva, mother of the karta had been seriously ill. We see from the AAC's order that this circumstances was pleaded before him also. The ITO the rejected this explanation on the ground that though there was such illness in the family the, assessee had been carrying on its business of manufacture and sale of tea throughout the year and that some....

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....asst. yr. 1969-70. (The return for 1969-70, as already noted, was filed on 15th Oct., 1970). It may be reasonable accepted, therefore, that upto 31st Dec. 1970, following the death of Padma Kumari Baruva the assessee would have had difficulty in filing the return of net wealth. Thus upto 31st Dec., 1970 the default for this year (1970-71) is held to have been explained satisfactorily. It is true that before the AAC reliance was placed by the assessee also on a circular on the CBDT dt. 17th Feb., 1972. This circular extended the time for filing the returns of net wealth for the asst. yr. 1970-71 and 1971-72, upto 28th Feb., 1972. The circular was applicable only to individuals and HUFs owning agricultural lands or other assets related theret....