1992 (3) TMI 128 - AT - Income Tax

Summary

Issues Involved:
1. Delay in filing the income tax return.
2. Validity of reasons provided for the delay.
3. Applicability of Amnesty Scheme.
4. Relevance of paying taxes and interest in relation to penalty.
5. Burden of proof for reasonable cause.

Issue-wise Detailed Analysis:

1. Delay in Filing the Income Tax Return:
The assessee filed the return for the assessment year 1983-84 on 31-3-1986, which was due on or before 31-7-1983, resulting in a delay of 32 months. The Income Tax Officer (ITO) issued a notice under section 271(1)(a) read with section 274, but the assessee did not respond, leading to a penalty of Rs. 14,692.

2. Validity of Reasons Provided for the Delay:
The assessee contended that the delay was due to not receiving share income particulars from the firm and the correct statement of account from APSFC. The Tribunal found these reasons unsubstantiated. It was noted that the assessee did not maintain books of account and estimated his net income. The argument that the interest and instalment particulars from APSFC were necessary for a proper estimate was dismissed as irrelevant since the assessee did not prove when he requested and received the account statement. The Tribunal emphasized that the burden to prove reasonable cause lies on the assessee, and mere explanations without proof are insufficient.

3. Applicability of Amnesty Scheme:
The assessee claimed that the return was filed during the Amnesty Scheme period and should be considered as such. However, the Tribunal found that the facts of the case did not support this claim. The Tribunal distinguished this case from Rawoof Enterprises' case, where returns filed under the Amnesty Scheme were accepted despite not being explicitly marked as such. The Tribunal concluded that the return in question could not be deemed an Amnesty return.

4. Relevance of Paying Taxes and Interest in Relation to Penalty:
The assessee argued that since he voluntarily filed the return and paid all taxes and interest under section 139(8), the penalty should not apply. The Tribunal rejected this argument, citing that charging interest does not preclude the imposition of penalties. The Tribunal referred to the Full Bench decision of the Andhra Pradesh High Court in Dargapandarinath Tuljayya & Co.'s case, which clarified that penalties and interest are separate enforcement mechanisms under the Income-tax Act.

5. Burden of Proof for Reasonable Cause:
The Tribunal reiterated that the burden of proof for showing reasonable cause for the delay lies with the assessee. The Tribunal cited several cases, including Vithaldas Jyawant v. CIT and Gujarat Travancore Agency v. CIT, to emphasize that the assessee must provide substantial evidence to support the claimed reasons for the delay. The Tribunal found that the assessee failed to discharge this burden, as there was no proof of when the share income particulars or the APSFC account statement were requested and received.

Conclusion:
The Tribunal held that the assessee did not provide a reasonable cause for the delay in filing the return and thus committed a willful default under section 271(1)(a). The penalty imposed by the lower authorities was deemed justified, and the appeal was dismissed.