1999 (1) TMI 10

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....e Surtax Act, 1964, can be levied if the return, though belated, is filed before the completion of assessment?" The facts are not in dispute. The assessee was to file the return for the assessment year 1973-74 under the Companies (Profits) Surtax Act, 1964, by September 30, 1973, the company, however, filed the return on December 22, 1977. The assessment was, however, completed on March 27, 1992. Since the return was filed by the assessee beyond the prescribed time, the Assessing Officer initiated penalty proceedings under section 9(1) of the Act and put the company on show-cause notice. The company replied to the notice contending that the return was filed declaring chargeable loss at Rs. 1,03,920 but due to disallowance of provision of....

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.... return is required to be filed by the assessee before September 30, of the assessment year, which period can be extended by the Assessing Officer an the application of the assessee. Sub-section (2) of the section provides for serving of a special notice to the principal officer of the company or where the company is a non-resident, to any person who has been treated as an agent under section 163 of the Income-tax Act. Under this provision the return is required to be filed within 30 days from the date of service of notice. Even this period can be extended by the Assessing Officer under sub-section (3) of the section which provides for furnishing of a return or a revised return by the assessee at any time before the assessment is made. The ....

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.... time before the assessment was made if he had not furnished such return within the prescribed time under sub-sections (1) and (2) of section 5. In other words an assessee's belated filing of return was permissible where such return was filed before the completion of assessment and the same did not attract or invite any penal action. This was in tune with the penalty provisions contained in section 9 of the Act which specifically provided for the levy of penalty where a person had failed to furnish the return as required under section 5 of the Act without any reasonable cause, This provision did not contemplate any levy of penalty for late filing of the return as was the case under the relevant provisions of the Income-tax Act. Therefore, s....