1989 (2) TMI 70

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.... 34,435 imposed under section 271(1)(a) for the assessment year 1965-66 ? (2) Whether, in the absence of the assessee's explanation or cause for the delay, the Appellate Tribunal's finding that the assessee's default was not wilful, was valid and proper ?" The assessee is a registered firm engaged in the business of export of textile goods. We are concerned with the assessment year 1965-66 in this reference. The Income-tax Officer issued a notice to the assessee under section 139(2) of the Act on August 13, 1965, and it, therefore, became necessary for the assessee to file its return within one month thereafter, i.e., on or before September 13, 1965. However, the assessee filed its return only on February 1, 1966, and as there was del....

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.... the assessee. That is how the matter has come up before this court on the questions of law referred to at the outset. Learned counsel for the Revenue contended, drawing attention to the finding recorded by the Tribunal in para 3 of its order to the effect, that the assessee had failed to adduce any reasonable cause for the delay of two months, that there is absolutely no material whatever by way of any explanation or cause for the delay and that the Tribunal had, without any material, proceeded to cancel the penalty levied and the conclusion of the Tribunal cannot be supported or sustained. On the other hand, learned counsel for the assessee submitted that having regard to the earlier extension of time for the filing of the return on....

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....he return up to November 30, 1965, and thereafter there was no reason at all given by the assessee for its inability to Me the return The Tribunal has also found that there was no reasonable cause. If, even according to the Tribunal that after November 30, 1965, the assessee had failed to adduce reasonable cause for the delay of two months, it is difficult to accept the view of the Tribunal that there was no wanton disregard by the assessee. The reason given by the assessee for its inability to file the return but seek an extension of time for that purpose up to November 30, 1965, was that the accounts had not been finalised. It has not been established that that state of affairs continued to exist even after November 30, 1965. Even when th....