9911796707
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Issues:
- Appeals under s. 271(1)(a) and s. 271(1)(b) of the IT Act, 1961 for assessment years 1967-68 and 1968-69. Analysis: 1. The appeals involved penalties under s. 271(1)(a) and s. 271(1)(b) of the IT Act for the assessment years 1967-68 and 1968-69. The returns were filed late, leading to penalties imposed by the ITO, which were later confirmed by the AAC. 2. Penalties under s. 271(1)(a): The penalties were imposed due to delays in filing returns caused by disputes between the partners, dissolution of the firm, and lack of proper documentation. The partners had difficulties, including not having possession of books of account, leading to delayed filings. The Tribunal found a reasonable cause for the delay and canceled the penalties under s. 271(1)(a) for both years. 3. Penalties under s. 271(1)(b): The penalties were imposed for alleged failures to comply with notices under s. 143(2) of the Act. The assessee argued that they had made efforts to comply with the notices and explained their position adequately. The Tribunal noted that the partners attended whenever possible and cooperated with the authorities. Considering the circumstances, the Tribunal found no justification for the penalties under s. 271(1)(b) and canceled them for both years. 4. The AAC had confirmed all four penalties, rejecting the assessee's arguments. However, the Tribunal, after considering all the facts and circumstances, found that the penalties under both sections were not justified. Therefore, all four appeals were allowed, and the penalties were canceled for both s. 271(1)(a) and s. 271(1)(b) for the respective assessment years.
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