1989 (12) TMI 84

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....eturn was considered late by 32 complete months. Thus, penalty proceedings under s. 271(1)(A) were initiated during assessment proceedings and statutory notice was issued and served. The assessee ignored the penalty proceedings and thereafter the learned ITO considered that it had nothing to say in the matter. The assessee was thus considered to have defaulted without reasonable cause. A penalty of Rs. 8,271 was imposed, vide order dt. 27th Jan., 1986, framed under s. 271(1)(A). 3. The order was impugned subsequently by the assessee and it was argued that Shri A.N. Kohli, the assessee's authorised representative was about 75 years of age and was ill and thus was said to have not been able to attend to the case. It was further pointed out....

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....s made before the learned AAC and that the facts remained unverified, as there was no explanation filed before the learned ITO either. It was also pointed out that the payment of tax by itself was not sufficient for ignoring the default. It was the learned Sr. Departmental Representative case before us that there was no justification for the learned AAC to cancel the penalty. 5. On behalf of the assessee, learned authorised representative Shri R.S. Sidhu supported the order under challenge and repeated and reiterated the submissions, seem to have been recorded therein. It was also pointed out by the learned authorised representative that the papers had been handed over to Shri Kohli on 30th July, 1982, after clearing the tax liability. I....

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....rd and record carefully perused. In this case, as mentioned earlier, due date for filing the return was on or before 31st July, 1982, but the same was filed only on 19th April, 1985, after receipt of the learned ITO's notice. The assessee did not participate in the penalty proceeding proceedings but it was brought out before the learned AAC that the papers for preparation of return, after payment of tax, were said to have been handed over to Shri Kohli, learned authorised representative who was said to be of 75 years of age and ailing. It was further submitted that on account of the learned authorised representative's ill-health, attention was not paid to the assessee's tax matters. Default was said to have been committed on account of inac....