2002 (7) TMI 55 - HC - Income Tax

Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in holding that no penalty under section 271(1)(a) could be levied against the registered firm for delay in filing the return when the advance tax paid by the firm exceeded the assessed tax pay able by the firm and the assessment resulted in refund? we are of the view that the Tribunal was not right in confirming the view in deleting the penalty imposed by the Income-tax Officer under section 271(1)(a) of the Income-tax Act 1961. We therefore answer the question in the negative i.e. in favour of the Revenue and against the assessee.

Summary

The High Court of Gujarat held that penalty under section 271(1)(a) could be levied against a registered firm for delay in filing the return, even if advance tax paid exceeded assessed tax and resulted in a refund. The court referred to previous decisions and directed the Tribunal to determine if there was a reasonable cause for the delay in filing the return. The Tribunal was instructed to make a decision under section 260(1) of the Income-tax Act.