9911796707
TMI Blog1984 (11) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... dies were unaware of the various obligations under various Acts including the WT Act. The returns were filed consequent to a notice, which was served on the assessee under s. 17(1). A search was conducted on the premises in July, 1976. As inspection of records were necessary, which were in the possession of the department. This further delayed the matters. The IT returns and the WT returns for all the years under consideration were simultaneously filed on 22nd July, 1978. Reliance were also placed on the Madras High Court decision in the case of Addl. CWT vs. Babulal K. Shah Anr. (1978) 114 ITR 370 (Mad) that the delay has to be calculated from the date on which the IT return was filed and till such time the IT return is no filed the dela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the custom in the various families in India family looks after the affairs of the family and the lady members or other members of the family are not aware of the various facts. It was, therefore, contended that there was no mala fide intention in the delay of filing of the returns. It was also contended that the same should be considered as a reasonable cause for delay in filing of the returns. The fact that the books were seized after the inspection cannot also be over looked. The Karta not being aware of his rights, obligations etc., and having any experience of dealing with the tax-department he took him for carrying out the inspection and understanding what are his obligations. It was again contended that placing reliance on the Madra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 17 no penalty is leviable. The ld. AAC has also considered the various books of accounts seized by the department consequent to a survey in July, 1976. The ld. AAC observed that the assessee had been seeking permission for inspection of the seized records and the last of such application was made on 10th Jan., 1978 and the inspection continued for over a month or so. The ld. AAC, therefore, came to the conclusion that even this could be considered to be a reasonable cause apart from the date of the death of the Karta. He was also of the view that when the accounts need to be finalised having debtors and creditors after the inspection was carried out drawing up of final accounts would necessarily take time of atleast a month or so. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other members of the family being ladies only and the only uncle being incapacitated, the notice under s. 17 which was issued in April, 1977 remained uncompiled with as assessments made under s. 16(5) on 7th March, 1978 while the assessee filed the return of wealth on 22nd July, 1978. The return that was filed on 22nd July, 1978, is, therefore, a non-existing return for the purpose of assessment. The facts that there was a search and seizure of books of accounts and the inspection was concluded by the assessee only in the month of February or so. The time required for filing of the returns was quite short when compared with the date of assessment, i.e., 7th March, 1978. The Madras High Court in the case of Addl. CWT vs. Babulal K. Shah ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
