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Issues Involved:
1. Liability of the assessee to submit a fresh return of income in compliance with notice u/s 148 of the Income-tax Act, 1961. 2. Applicability of penalty provisions u/s 271(1)(a) for failure to file a fresh return in compliance with notice u/s 147/148. Summary: Issue 1: Liability to Submit Fresh Return The court examined whether the assessee was liable to submit a fresh return of income in compliance with the notice u/s 148 of the Income-tax Act, 1961. The court noted that the notice issued u/s 148 required the assessee to file revised returns of its income. It was held that a notice u/s 148 carries an obligation to file a fresh return in response to the said notice. If the assessee believes that the earlier return should suffice, they must inform the Income-tax Officer (ITO) of this decision. In the present case, the assessee was liable to submit fresh returns of income in compliance with the notice u/s 148. Issue 2: Applicability of Penalty Provisions u/s 271(1)(a) The court considered whether the penalty provisions u/s 271(1)(a) were attracted due to the assessee's failure to file a fresh return in compliance with the notice u/s 147/148. The court emphasized that the burden of proof lies on the Department to establish that the assessee failed to furnish the return without reasonable cause. The court noted that the reasons provided by the assessee for not filing the returns, such as improper service of notice and seizure of records, were found to be unsustainable by the Tribunal. The Tribunal's findings indicated that the assessee's failure to file the returns was a deliberate and wilful act. Consequently, the penalty provisions u/s 271(1)(a) were applicable. Conclusion: Both questions were answered in the affirmative, against the assessee and in favor of the Revenue. The court held that the assessee was liable to submit fresh returns in compliance with the notice u/s 148 and that the penalty provisions u/s 271(1)(a) were attracted due to the failure to file the returns.
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