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Penalty under section 271(1)(a)/271(2) of the Income-tax Act, 1961 for delay in furnishing the return. Analysis: The judgment pertains to a partnership firm's assessment for the year 1964-65, where the assessee failed to submit the return on time, resulting in a penalty imposition under section 271(1)(a) of the Income-tax Act, 1961. The Income-tax Officer levied a penalty of Rs. 47,808, which was later reduced to Rs. 40,764 by the Appellate Assistant Commissioner based on a previous decision. The assessee contended that since the difference between the tax assessed and tax payable was minimal (Rs. 2,597), no penalty should have been imposed. However, the Tribunal upheld the penalty, stating that the assessee failed to provide any reasonable cause for the delay in filing the return. The Tribunal emphasized that without a valid reason, the provisions of section 271(1)(a) were applicable, leading to the penalty confirmation. The High Court, in its analysis, highlighted that the assessee did not offer any explanation for the delay in filing the return, even ignoring the show-cause notice issued by the Income-tax Officer. The Court noted that the Tribunal's decision was based on the absence of any reasonable cause presented by the assessee. The Court also clarified that the controversy revolved around the presence of a reasonable cause for the delay, which is typically a factual determination. Since the assessee failed to provide any justification for the delay, the Court upheld the Tribunal's decision to impose the penalty under section 271(1)(a) of the Act. The Court found no fault in the Tribunal's conclusion and ruled in favor of the Revenue, affirming the penalty imposition. Therefore, the High Court answered the referred question in the affirmative, supporting the Revenue and dismissing the assessee's appeal. The reference was disposed of with no costs awarded.
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