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Issues: Penalty under section 271(1)(a) for delay in filing income tax return.
Analysis: The judgment pertains to a tax case reference under section 256 of the Income-tax Act, 1961, involving the levy of a penalty under section 271(1)(a) amounting to Rs. 35,569 for the assessment year 1977-78. The primary issue revolves around whether the Appellate Tribunal was correct in upholding the penalty for the delay in filing the income tax return. The delay in filing the return was about two years and seven months beyond the due date of July 31, 1977. The Income-tax Officer issued a notice under section 148 of the Act, and the assessee filed the return only after the notice was served. Subsequently, a notice under section 274 was issued to the assessee for the belated filing, to which there was no response from the assessee, leading to the imposition of the penalty. The Commissioner of Income-tax (Appeals) initially canceled the penalty, citing the lack of cash resources for timely payment of self-assessment tax as a reason for the delay. However, the Tribunal reinstated the penalty, emphasizing that the statutory obligation to file the return under section 139(1) was not fulfilled by the assessee. The Tribunal rejected the argument that financial constraints prevented the timely filing, stating that such reasons do not constitute a valid ground for the delay. The judgment affirms the Tribunal's decision, emphasizing that the lack of funds for tax payment does not justify the delay in filing the return. Furthermore, the judgment addresses additional arguments raised by the assessee's counsel, including the contention that interest collected by the Revenue implied an extension for filing the return. The court dismisses this argument, highlighting the absence of concrete evidence supporting the claim of interest payment. The judgment also clarifies the legal position post the 1970 amendment to the Income-tax Act, emphasizing the automatic levy of interest for delayed filing irrespective of time extension grants. Ultimately, the court upholds the penalty, concluding that the delay in filing the return lacked reasonable cause, and dismisses the appeal against the penalty levy. In conclusion, the judgment answers the comprehensive question regarding the penalty levy in the affirmative, rejecting the arguments presented by the assessee and affirming the Tribunal's decision to uphold the penalty under section 271(1)(a).
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