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Issues:
Appeals against penalties imposed under section 271(1)(a) for late filing of income tax returns for assessment years 1984-85 and 1985-86. Analysis: 1. The assessees, Canadian citizens, were co-sharers in agricultural lands acquired by the Government, leading to compensations and interest. Notices under section 148 were issued for the assessment years 1982-83 to 1988-89. Returns were filed late on 19th Oct., 1992, due to various reasons, including the sudden demise of their father, who handled tax matters. The AO imposed penalties under section 271(1)(a) for the delay beyond Dec., 1990. The Dy. CIT(A) partially reduced the penalties for a period of four months based on similar cases. 2. The assessees contested the penalties, arguing that the entire delay should have been accepted due to reasonable causes preventing timely filing. They cited a similar case where penalties were deleted by CIT(A). The Revenue supported the lower authorities' decisions. 3. The Tribunal examined the facts, acknowledging the late filing but considering the circumstances. The assessees' father's death, engagement of professionals, ongoing litigation, and delay in accessing funds were factors contributing to the delay. The Tribunal noted that the CIT(A) in a similar case deleted penalties for the entire period, considering valid reasons for the delay. 4. Considering the circumstances and the reasons provided by the assessees, the Tribunal concluded that they were prevented by a reasonable cause in filing the returns late. It found no conscious disregard by the assessees for the remaining period of delay. Therefore, the penalties imposed by the AO and sustained by the Dy. CIT(A) were unjustified. The Tribunal set aside the penalties for the assessment years in question, allowing the appeals filed by the assessees.
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