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Issues:
Penalty imposition for late filing of income tax returns for assessment years 1976-77 and 1977-78. Detailed Analysis: 1. The penalty appeals were filed by the assessee against the orders passed by the CIT(A), Jodhpur for the assessment years 1976-77 and 1977-78. The assessee, a firm of four partners, filed the income tax returns with a delay of two completed months for each of the assessment years. The IT returns were due on specific dates, but were filed later. The IT return for 1977-78 had an extension filed in Form No. 6, which was rejected by the Income Tax Officer (ITO). Penalties were imposed for late filing of returns. 2. Aggrieved by the penalty orders, the assessee appealed before the CIT(A), who confirmed the penalties. The appeals were dismissed, leading to the second appeals before the Appellate Tribunal ITAT Jaipur. 3. During the hearing, the Tribunal considered the reasons for the delay in filing the returns. The total income assessed for both years was provided. The Tribunal noted that the delay was only for two months and that an extension request had been filed for 1977-78. The reason for the delay was attributed to discrepancies in the trial balance, which hindered the finalization of accounts necessary for filing accurate returns. The Tribunal found the explanation for the delay genuine and reasonable, considering the complexities involved in preparing the necessary financial statements. Referring to the Hindustan Steel Ltd. case, the Tribunal held that the delay was technical and did not warrant a penalty. 4. Consequently, the Tribunal allowed the appeals and revoked the penalties imposed for the assessment years 1976-77 and 1977-78.
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