1982 (12) TMI 84 - AT - Income Tax

Summary

Issues:
1. Imposition of penalties under section 271(1)(a) of the IT Act, 1961 for consecutive assessment years.
2. Obligation to file a return in respect of share income of a minor son under sections 139(1) and 64 of the IT Act.
3. Validity of the assessee's belief regarding the obligation to disclose share income of the minor son in the return.

Detailed Analysis:

1. The judgment pertains to a series of appeals by the revenue challenging the cancellation of penalties imposed by the Income Tax Officer (ITO) under section 271(1)(a) of the IT Act for the assessment years 1976-77 to 1979-80. The penalties were canceled by the Appellate Assistant Commissioner (AAC). The assessee, in this case, had not filed returns as her own income was below the taxable limit, but the inclusion of her minor son's income made her total income taxable. The ITO imposed penalties for non-filing of returns, which were subsequently deleted by the AAC. The main issue was whether the assessee had a reasonable cause for not filing the returns.

2. The crux of the issue revolved around the obligation of the assessee to file a return in respect of the share income of her minor son under sections 139(1) and 64 of the IT Act. The assessee argued that as per legal provisions and a decision of the Madhya Pradesh High Court, there was no legal obligation to disclose the minor son's income in her return. The revenue contended that the amended return form required disclosure of the minor son's income. The Tribunal analyzed whether the assessee genuinely believed that she was not obligated to disclose the minor son's income based on the legal provisions cited.

3. The Tribunal upheld the AAC's decision to delete the penalties, emphasizing that the assessee's belief regarding the obligation to disclose the minor son's income was supported by legal authority and the provisions of sections 139(1) and 64 of the IT Act. The Tribunal focused on whether the assessee had a bona fide belief that there was no obligation to report the minor son's income. The decision was based on the legal position emerging from the relevant sections and the authority cited by the assessee. Ultimately, all the appeals by the revenue were dismissed, affirming the AAC's order.