1984 (3) TMI 159 - AT - Income Tax

Summary

Issues:
1. Imposition of penalty under section 271(1)(a) of the IT Act, 1961 for delay in filing income tax return for the assessment year 1976-77.
2. Imposition of penalty under section 273(c) of the IT Act for failure to furnish the estimate of advance tax for the assessment year 1977-78.

Analysis:

Issue 1: Imposition of penalty under section 271(1)(a) for delay in filing income tax return for the assessment year 1976-77:

The assessee filed the income tax return for the assessment year 1976-77 on 4th Oct., 1976, which was due on 30th June, 1976. The delay of three completed months led to the imposition of a penalty of Rs. 538 under section 271(1)(a) of the IT Act. The assessee claimed pre-occupation with his employer's garden matters as the reason for the delay, but this explanation was not accepted by the Income Tax Officer (ITO). The Appellate Assistant Commissioner (AAC) also upheld the penalty. The Appellate Tribunal found that no written explanation was submitted before the ITO, and the new explanation of accountant's latches presented during the appeal was not accepted due to lack of supporting evidence. Consequently, the Tribunal declined to interfere with the penalty imposed under section 271(1)(a) for the assessment year 1976-77.

Issue 2: Imposition of penalty under section 273(c) for failure to furnish the estimate of advance tax for the assessment year 1977-78:

For the assessment year 1977-78, the assessee failed to file the estimate under section 212(3A) of the IT Act, despite paying the tax based on the last returned income. The ITO imposed a penalty of Rs. 1,086 under section 273(c) for furnishing an estimate below the actual income. However, the Appellate Tribunal found that the penalty under section 273(c) was not justified as the provision was not attracted in this case. The penalty was imposed for providing an estimate below the income, which was not a valid ground for penalty under section 273(c). Therefore, the Tribunal allowed the appeal against the penalty imposed under section 273(c) for the assessment year 1977-78.

In conclusion, the Appellate Tribunal dismissed one appeal regarding the penalty under section 271(1)(a) for the assessment year 1976-77 but allowed the appeal against the penalty imposed under section 273(c) for the assessment year 1977-78.