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TMI Blog1977 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings under s. 18(1)(a) the WTO levied the impugned penalties. The assessee (an HUF) appealed. But the AAC agreed with the WTO and confirmed the penalties. Hence these appeals by the assessee. 3. Shri P.K. Roy, authorised representative, took us through the explanation of the assessee before the authorities below in the matter. He contended that the assessee had explained the default for all the three years and had shown reasonable cause. Hence the penalties required to be cancelled. The Departmental Representative, on the other hand, relied on the orders of the authorities below and contended that this was a case where no reasonable cause worth the name and had been shown. 4. We have considered the submissions before us and the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s was not done, nothing much could be said about the application. We, however, notice that though there was no merit in much of the reasons given for the default by the assessee for this year, there was on circumstances pointed out by it, which deserved consideration. The assessee had explained that Padma Kumari Baruva, mother of the karta had been seriously ill. We see from the AAC s order that this circumstances was pleaded before him also. The ITO the rejected this explanation on the ground that though there was such illness in the family the, assessee had been carrying on its business of manufacture and sale of tea throughout the year and that some time could have been devoted for the preparation of the WT return. The AAC does not adopt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It may be reasonable accepted, therefore, that upto 31st Dec. 1970, following the death of Padma Kumari Baruva the assessee would have had difficulty in filing the return of net wealth. Thus upto 31st Dec., 1970 the default for this year (1970-71) is held to have been explained satisfactorily. It is true that before the AAC reliance was placed by the assessee also on a circular on the CBDT dt. 17th Feb., 1972. This circular extended the time for filing the returns of net wealth for the asst. yr. 1970-71 and 1971-72, upto 28th Feb., 1972. The circular was applicable only to individuals and HUFs owning agricultural lands or other assets related thereto, to enable a proper valuation of the same. The AAC rejected this explanation on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee did apply for extension of time upto 31st Dec., 1971. (The WTO does not record the reasons mentioned by the assessee for the extension but it was clarified in the hearing before us that this was because of the difficulty in finalising the accounts of this year). The WTO did grant extension upon 30th Sept., 1971 but not further. Hence he had levied the penalty taking the period of default as 1st Oct., 1971 to 17th April, 1972. We do not see from the material on record that the assessee had shown any reasonable cause for the default beyond 30th Sept., 1971. Hence we do not see any reason for interference with the orders of the authorities below as regards the penalty for this year. 8. In the result, ITA No. 431 (Gau) of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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