9911796707
TMI Blog1983 (7) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... st, 1976 it was brought to the notice of the ITO as under: "Due to the death of the nephew of the assessee in motor accident in front of the shop, the assessee could not file his return at the material time. The minds of the partners were perturbed and, therefore, final accounts could not be prepared. That is the reason for delay." Considering the explanation given the ITO was not prepared to accept that the delay was caused by a reasonable cause. Accordingly the ITO levied a penalty of Rs. 1570. Against the penalty levied, the assessee went in appeal to the AAC. That appeal was allowed. 3. Thereafter there was an appeal by the ITO. In those appellate proceedings being ITA No. 375/Ind/77-78 by an order dt. 4th September, 1978 the AAC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee s business premises. Closely related as the three partners are the partners and their family members reside in one premises, as members of one family. It was accepted before the AAC in the set-aside proceedings that the return for the year 1972-73 under consideration, the previous year being the year ending 31st March, 1972, was due on 30th July, 1972. It was, however, added that because of the death of Brijmohandas who is the grand nephew of Shyamlal, he was under a shock, so that he was not mentally alert to close the accounts for the first year after the said event, namely, the accounts for the year ending 31st March, 1971. It was explained that whereas the assessee had filed its return for the year 1970-71 as early as 15th M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ily the reasons for filing delayed return on the basis of which the levy of penalty could be unjustified." Accordingly, the AAC in the set-aside appeal proceedings disagreed with his predecessor and upheld the order of the ITO. 6. On appeal the assessee has raised as many as four grounds. However, the four grounds can be summarised briefly that on facts the AAC erred in confirming the order of the ITO levying the penalty. Shri Gupta for the assessee stated the facts in some details to which we have made a reference earlier. Shri Gupta for the assessee stated that the AAC in the present proceedings was not justified in coming to the conclusion that the relationship of Shyamlal to Brijmohandas cannot be said to be close relationship. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility other assessee had to pay tax of Rs. 108 only. Shri Gupta submitted that u/s 130(8) of the Act the assessee has already been charged interest of Rs. 798. Shri Gupta submitted that additional penalty of Rs. 1570 is undoubtedly a very heavy penalty. 7. Shri Shyamlal fairly and properly accepted that the primary facts brought to our notice by Mr. Gupta are correct. On those facts Shri Shyamlal urged that the conclusion drawn by the AAC is a fair and proper conclusion. As regards the mitigating circumstances relied on by Shri Gupta, Shri Syamlal submitted that on an income of Rs. 35,985 the assessee was required to pay a tax of Rs. 1733 as the assessment was made in the status of registered firm. Shri Shyamlal submitted that once on ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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