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Issues:
Levy of penalty under s. 17(1)(a) of the GT Act, 1958 for failure to file gift tax return within prescribed time limit. Analysis: The appeal was against the order of the Dy. CGT(A) sustaining the penalty under s. 17(1)(a) of the GT Act, 1958 for the assessment year 1979-80. The assessee failed to file the gift tax return on time, leading to the penalty. The GTO issued a notice to show cause for the penalty, which was later confirmed by the Dy. CGT(A) due to the delay of over four years in filing the return. The explanation of the assessee regarding the delay was not accepted, as there was no evidence to support his claims of being unaware of the gift tax liability. The GTO and Dy. CGT(A) found a conscious disregard by the assessee in complying with statutory requirements, justifying the penalty. The legal aspect of the case focused on the requirement of filing the gift tax return within the specified time limit as per s. 13(1) of the GT Act, 1958. The GTO issued a notice under s. 17(1)(a) for the failure to furnish the return, as mandated by law. The provisions of s. 17(1)(a) clearly state the consequences of failing to file the return, leading to a penalty. Any defects in the notice issued were covered under s. 41C of the GT Act, ensuring the validity of the penalty notice. The arguments of the assessee regarding the delay and the reasons for not filing the return on time were thoroughly examined. The contention of the assessee that he was under a bona fide impression of not being liable for gift tax was dismissed due to his past compliance with filing returns and paying taxes. The delay in filing the return was not justified by the assessee's health condition or location. The GTO's decision to levy the penalty was upheld, as there was no reasonable cause presented by the assessee to absolve him of the default in filing the return within the prescribed time limit. In conclusion, after considering the facts, legal provisions, and arguments presented, the tribunal found the penalty justified and dismissed the appeal. The actions taken by the GTO and confirmed by the Dy. CGT(A) were deemed appropriate, and no interference with their orders was warranted. Thus, the appeal was dismissed, and the assessee's challenge to the penalty levy was unsuccessful.
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