1982 (11) TMI 74 - AT - Income Tax

Summary

Issues involved:
Penalty appeal u/s 285A(2) against delay in furnishing information in Form No. 52 as per rule 120 of Income-tax Rules.

Judgment details:

1. The assessee failed to furnish required information within the stipulated time frame, leading to penalty proceedings u/s 285A(2). Commissioner imposed a token fine of Rs. 2,000 considering it as the first default by the assessee. Assessee appealed, arguing unawareness of legal requirement due to being a new contractor. Tribunal reduced the penalty to Rs. 1.65 per day till the date of filing the return for the assessment year 1978-79, granting relief to the assessee.

2. Accountant Member disagreed with the penalty, emphasizing the complexity of tax laws and the reasonable excuse of ignorance. Noting the small nature of the case, lack of professional assistance, and tax deductions at source, the Member deemed the penalty unjustified and ordered its deletion.

Third Member's Resolution:
The Third Member resolved the conflict between the previous members by concluding that no fine was imposable in this case. Considering the circumstances of the assessee being a new contractor, lack of professional guidance, tax deductions at source, and refund entitlement upon assessment, the Third Member agreed with the Accountant Member's decision to cancel the fine.