1990 (11) TMI 115

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..... P. JEEVAN REDDY C. J. -Under section 256(2) of the Income-tax Act, 1961, the Tribunal has stated the following two questions : "1. Whether, on the facts and in the circumstances of the case, was the Tribunal justified in casting the burden on the Department to prove that the assessee had no reasonable cause for the delay in furnishing the return. ? 2. Whether, on the facts and in the circu....

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....ibunal that no one appeared on behalf of the assessee in response to the said notice. Accordingly, the Income-tax Officer imposed a penalty of Rs. 5,460. The assessee filed an appeal and it was urged before the Appellate Assistant Commissioner that the return could not be filed in time because the munim had fallen ill. This plea was rejected by the Appellate Assistant Commissioner holding that ....

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....s, it is clear that the assessee gave an explanation for the delay in filing the return. After rejecting the explanation, on behalf of the Department no positive material was brought on record to show that the assessee has, without any reasonable cause failed to file the return in time. The authorities below also pointed out no circumstances from which it could be inferred or established that the ....

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....erefore, was in error in casting the burden entirely on the Department to establish the wilful failure on the part of the assessee. Reference in this context may be had to the decision of the Supreme Court in Gujarat Travancore Agency v. CIT [1989] 177 ITR 455 where a similar approach of the Tribunal was disapproved by the Kerala High Court which disapproval was confirmed by the Supreme Court in a....