1992 (4) TMI 64 - AT - Income Tax

Summary

Issues:
1. Penalty for late submission of income tax return under section 271(1)(a).
2. Penalty for non-compliance with notices under sections 142(1) and 143(2), and failure to get accounts audited under section 142(2A).
3. Penalty under section 271(1)(b) for non-compliance with statutory requirements.
4. Penalty under section 271(1)(a) for non-submission of income tax return within the specified time.

Issue 1:
The judgment addresses four appeals by the same assessee against the orders of the first Appellate Authority regarding the penalty for late submission of income tax return under section 271(1)(a). The appellant argued that the penalty was discretionary and emphasized the challenges faced in compiling material for filing the return in time. The Tribunal found that the delay was not due to a reasonable cause and declined to interfere with the first Appellate Authority's decision to levy the penalty. The Tribunal held that once a default without a reasonable cause is established, the penalty is justified, and approved the penalty imposed by the Departmental authorities.

Issue 2:
In another appeal, the penalty was imposed under section 271(1)(b) for non-compliance with notices under sections 142(1) and 143(2), and failure to get accounts audited under section 142(2A). The Tribunal upheld the penalty, stating that the distinction between a Government company and a non-Government company does not justify condoning the non-compliance with statutory requirements. The Tribunal found no reasonable explanation for the default and declined to interfere with the penalty imposed by the Departmental authorities.

Issue 3:
The third appeal involved a penalty under section 271(1)(b) for non-compliance with statutory requirements. The appellant, a Government-owned corporation, argued that the non-appointment of statutory auditors was not a reasonable cause for the default. The Tribunal agreed with the Departmental authorities, stating that no preferential treatment could be given simply because the appellant was a Government company. The Tribunal upheld the penalty imposed under section 271(1)(b).

Issue 4:
The final appeal concerned a penalty under section 271(1)(a) for non-submission of the income tax return within the specified time. The Tribunal noted that the appellant failed to file the return despite notices and reminders, indicating a clear default. The Tribunal agreed with the first Appellate Authority that there was no reasonable cause for the delay and upheld the penalty imposed under section 271(1)(a). The Tribunal found the appellant's lackadaisical approach to compliance not a reasonable cause for the failure to meet statutory requirements.

In conclusion, the Tribunal dismissed all four appeals, upholding the penalties imposed by the Departmental authorities for various non-compliances with statutory requirements and late submission of income tax returns.