1976 (3) TMI 40

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....law in holding that the applicant had not established that the belated filing of the return was on account of any reasonable cause ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that notwithstanding the fact that the return filed by the applicant showed income below the taxable limit there was no reasonable cause for not filing the return ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the explanation offered by the applicant for the delay in filing the return was not reasonable cause for the delay ? 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right ....

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....but not exceeding in the aggregate fifty per cent of the tax........" Sub-section (2) of this section states : " When the person liable to penalty is a registered firm or an unregistered firm which has been assessed under clause (b) of section 183, then, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-section (1) shall be the same amount as would be imposable on that firm if that firm were an unregistered firm. " Sub-section (1) has been amended with retrospective effect in 1974 ; and, after the amendment, the relevant portion of sub-section (1), so far as is material, reads as follows : " (1) If the Income-tax Officer or the Appellate Assistant Commissioner in the course o....

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....o accept this contention. The language of section 271(2) is clear and definite and is not capable of such an interpretation. As per sub-section (2) of section 271, the tax payable by a registered firm has to be assessed as if it were an unregistered firm, and on the tax so assessed, the penalty has to be computed. As a matter of fact, the word " amount " occurring in sub-section (2) emphasises this construction, because, according to sub-section (2), " the penalty imposable under sub-section (1) shall be the same amount as would be imposable on that firm if that firm were an unregistered firm'. " The word " amount " can be given the meaning contemplated by section 271(2) only when the tax is assessed in the hands of the registered firm as i....