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- Penalty imposed for delay in filing income tax returns for three different assessment years. Analysis: The judgment by the Appellate Tribunal ITAT Jaipur dealt with three appeals concerning penalties imposed for delays in filing income tax returns for different assessment years. The delays in question were 37 months, 25 months, and 14 months for the respective years. The assessee argued that the delay in filing the return for one assessment year was due to the finalization of accounts from the previous year and the partners' health issues. The departmental representative contended that no valid reasons were provided at the initial stage by the assessee. For the assessment year 1977-78, the Tribunal noted that the business had shown significant growth, undermining the argument that partners' health issues caused the delay. However, considering the delay in filing the return for the previous year, the Tribunal allowed a further two months before imposing penalties. The penalties were held applicable from December 1, 1979, to August 31, 1980, totaling nine months. Regarding the assessment years 1978-79 and 1979-80, the assessee raised a legal argument based on the notice served for the penalty. The assessee contended that penalties should not be imposed for delays predating the notice under section 148. The Tribunal considered precedents and ruled in favor of the assessee, quashing the penalties for these two years. The Tribunal carefully analyzed the arguments presented by both parties. It distinguished the case law cited by the departmental representative, emphasizing that the intention to levy penalties only from the date of the notice under section 148 was clear in this case. Relying on a previous decision, the Tribunal accepted the assessee's argument and annulled the penalties for the assessment years 1978-79 and 1979-80. In conclusion, the Tribunal partially allowed the appeal for the assessment year 1977-78 and fully allowed the appeals for the assessment years 1978-79 and 1979-80.
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