1998 (11) TMI 58

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....ming the amount of penalty of Rs. 40,764 levied under section 271(1)(a)/271(2) of the Income-tax Act, 1961, when the firm had paid Rs. 29,357 as provisional demand against the final demand of Rs. 31,950 the net tax payable being Rs. 2,597?" The assessee is a partnership firm. The assessment pertains to the assessment year 1964-65. The return of the assessee was due on June 30, 1964. The return was submitted by the assessee after one year on June 30, 1965. The Income-tax Officer issued show-cause notice to the assessee for imposition of penalty under section 271(1)(a) of the Income-tax Act, 1961. The assessee did not submit any explanation in response to the said show cause notice. The Income-tax Officer, therefore, levied penalty of Rs. ....

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....on as to the conduct of the assessee or as to the reasonable cause for the delay in filing the return, in the absence of the assessee having not shown any such reasonable cause either before the lower authorities or before us. We are, therefore, satisfied, that on the facts and circumstances of the case, the provisions of section 271(1)(a) are squarely attracted in the assessee's case." Hence, this reference at the instance of the assessee. We have heard Mr. Mistry, learned counsel for the assessee, who submits that the difference between the assessed tax as a registered firm and the advance tax paid being only Rs. 2,597, it is not a fit case for an imposition of penalty. According to him, the assessee could not have visualised the ex....