1991 (3) TMI 225

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.... section 285A(2) of the Income-tax Act. 2. The assessee is a registered firm. It had entered into contracts with the Executive Engineer of the State Government for sinking borewells in various places. The Commissioner of Income-tax noted that for the assessment year 1980-81, the total receipts from such contracts was Rs. 20,35,689 and for the assessment year 1981-82 Rs. 7,22,766 but the assesse....

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....ra Pradesh High Court in the case of Addl. CIT v. Khayam Constructions [1980] 123 ITR 573 referred to by the CIT, this was not a fit case for imposition of penalty. On the other hand, the Revenue supported the order of the CIT. 4. On a consideration of the facts of the case, we are of the opinion that these are not fit cases for imposition of penalty at all. Section 285A(1) requires the furnish....

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....and even if that belief were to be erroneous, it would amount to a reasonable cause for not furnishing the required particulars. 5. There is another aspect to this case. The contracts were taken in the previous years ended 31-3-1980 and 31-3-1981. The assessment had been completed by 1983. Thereafter the assessee had voluntarily filed Form No. 52 on 11-2-1986. It was subsequently on 2-6-1986 th....