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TMI Blog1984 (3) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... thout reasonable cause, failed to furnish the return within time. The assessee had actually not shown any cause for not filing the return in time and it had merely submitted that no penalty can be imposed on it as no tax was payable. 2. The assessee appealed to the AAC. The only contention raised before the AAC was that, after adjusting the advance tax and the tax deducted at source, no tax was due from the assessee. On the other hand, the assessment resulted in refund and, therefore, no penalty could be levied. The learned AAC negatived this contention but holding that the delay in filing the return was only of two completed months, he reduced the penalty by Rs. 433. Feeling aggrieved, the assessee has preferred this appeal. 3. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e per cent of the total income computed under this Act without giving effect to the provisions of sections 11 and 12, for each year or part thereof during which the default continued ; (b) in any other case, in addition to the amount of the tax, if any, payable by him, a sum equal to two per cent of the assessed tax for every month during which the default continued. Explanation : In this clause ' assessed tax ' means tax as reduced by the sum, if any, deducted at source under Chapter XVII-B or paid in advance under Chapter XVII-C ; (2) When the person liable to penalty is a registered firm or an unregistered firm which has been assessed under clause (b) of section 183, then, notwithstanding anything contained in the other provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the penalty for that year was cancelled. The learned departmental representative, on the other hand, relied upon the rulings of the Gujarat and Calcutta High Courts in CIT v. R. Ochhavlal & Co. [1976] 105 ITR 518 and CIT v. Priya Gopal Bishoyee [1981] 127 ITR 778, respectively. The Hon'ble Gujarat High Court held that clauses (a), (b) and (c) of section 271(1) deal with different kinds of default and where a registered firm failed to furnish its return in time, it was liable to penalty even if as a registered firm no tax was due from it. It was held that penalty was leviable on a registered firm in the same manner as it would be leviable on an unregistered firm because of the provisions of section 271(2). Similar view was taken by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall pay, in addition to the amount of tax, if any, payable by him, a sum equal to two per cent of the assessed tax for every month during which the default continued. The provisions of item (b) and the use of the words ' if any ' would indicate that liability to pay tax is not a pre-condition for imposition of penalty against a person who fails to furnish his return, which he is bound to furnish. Sub-section (2) of section 271 provides that when the person liable to penalty is a registered firm then, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-section (1) shall be the same amount as would be imposable on that firm if that firm were an unregistered firm. No doubt, where, on an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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