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Issues:
1. Dispute regarding penalty under section 271(1)(a) for assessment year 1973-74. Analysis: The appeal pertains to the penalty of Rs. 8640 under section 271(1)(a) for the assessment year 1973-74. The primary issue revolves around the filing of the income tax return by the due date. The Income Tax Officer (ITO) contended that the return was filed on 15th April, 1974, resulting in an 8-month delay, leading to the initiation of penalty proceedings. The assessee claimed that the return was filed on 14th Aug., 1973, supported by the original receipt issued by the Department. However, the ITO found discrepancies, such as the absence of an entry in the receipt register for the alleged filing date and the lack of a "duplicate" mark on the return filed in April. The ITO also noted the charging of penal interest and the issuance of a notice under section 139(2) in February 1974, casting doubt on the timely filing claim. The Appellate Assistant Commissioner (AAC) upheld the penalty, emphasizing that the firm failed to prove the timely filing of the return. The AAC differentiated the current case from previous years where penalties were deleted due to reasonable causes like the illness of a partner. The AAC concluded that the penalty was justified as the firm did not establish a valid reason for the delay in filing the return. Upon further appeal, the Appellate Tribunal considered the evidence presented by the assessee, including the original receipt issued on 14th Aug., 1973, and the payment of tax in December 1973. The Tribunal agreed with the assessee's contention that the return was filed on time, supported by various facts like the partners' timely filing of returns. The Tribunal also noted the delayed closure of accounts due to a partner's illness, which had been accepted as a reasonable cause in previous years. Consequently, the Tribunal ruled in favor of the assessee, canceling the penalty. In conclusion, the Tribunal found that the evidence provided by the assessee, coupled with the circumstances surrounding the filing of the return and the partner's illness, justified the cancellation of the penalty under section 271(1)(a) for the assessment year 1973-74.
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