9911796707
TMI Blog1985 (12) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year involved is 1979-80, the previous year of which is ending on 31st Dec., 1979. The assessee had share income from the firm and income from agriculture and capital gains. The assessee filed the returns of income, which were not accepted by the ITO. In their incomes, the ITO added capital gains, which they received as compensation for the acquisition of their agricultural lands amounting to Rs. 22,500. However, the ITO before the completion of the assessee proceedings in each case, found that the returns were filed belated in each case by 22 months and, therefore, he initiated penalty proceedings under s. 271(1)(a) of the Act. In consequent of it, the ITO issued notices under s. 274 of the Act as to show cause why penalty under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. However, there was no mention in the aforesaid application that an inspection was required for elucidating some information on the chargeability of capital gains or for the purpose of filing the returns for the asst. yr. 1979-80 the year under appeal, that, however, the assessee had "submitted his income returns duly signed to the then counsel to be submitted in time", was quite an interepting one, that a perusal of the records of the ITO showed that the returns of income, which were filed by the assessee were printed on 27th March, 1980 long after the date for the filing of the returns, that even the verification of solemn affirmations were singned by the assessee on 6th March, 1981, hardly a month prior to the actual filing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thereby held on the facts of the case that he did not find any merit that the delay in filing of the returns was attributable to some reasonable cause. Accordingly, he confirmed the imposition of penalty for late filing of the returns in each case under s. 271(1)(a) of the Act. The assessee being further aggrieved have preferred these appeals. 5. The ld. counsel for the assessee has reiterated the stand which was taken by him before the ld. AAC a mentioned above. However, he has made an application for admission of additional ground in both the appeals and the same shows that capital gains on agricultural lands are not subject matter of capital gains-tax and, therefore, computation of penalty in the cases is incorrect. Reliance is pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s determination and the facts are not to be collected. Moreover, the Departmental Representative has not objected the application for admission of the additional grounds. Accordingly, the applications for additional ground are allowed. 8. There is no substance in the contentions of the ld. counsel for the assessee when he contends that there is sufficient cause for late filing of the returns because the delay is there on the part of the counsel in filing these, in view of the facts alleged against the counsel have not been proved. Moreover, neither the assessee nor the counsel have filed affidavit to support that the delay is there in view of the facts stated on the part of the counsel and, therefore, the delay is without explanation. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the plea of the assessee on this subject. 9. Now the only contention for my determination is that whether the assessee to succeed on the issue of quantum of penalty in each case. In the case of Manubhai A. Seth Ors. vs. Nirgudkar, N. D. (1981) 22 CTR (Bom) 41 : (1981) 128 ITR 87 (Bom) their Lordships of the Bombay High Court has held that the capital gains received on the sale of agricultural lands are not subject matter of capital gains-tax. therefore, in view of it I hold that the computation of penalty is incorrect. The reason is that the penalty is computed for late filing of returns at 2 per cent of the tax for the year under consideration. It is immaterial if in the assessment year the tax is computed which has become final, be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
