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TMI Blog1992 (9) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the first appellate authority. Except the appeal No. 1593/PN/88 relating to levy of penalty under section 273(2)(b) for assessment year 1981-82, rest of the appeals pertain to levy of penalty under section 271(1)(a) of the Income-tax Act, 1961 for belated filing of returns for the assessment years 1974-75, 1977-78, 1978-79, 1979-80, 1980-81 and 1981-82. 3. The relevant facts are that the assessee is an individual who follows financial year as the previous year. He derives income from house property, profession and other sources. The assessee is a new assessee in the sense that he has not already been assessed to tax. He filed returns of income for the assessment years 1974-75, 1977-78, 1978-79, 1979-80, 1980-81 and 1981-82 on 16-1- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required under section 209A of the Income-tax Act, 1961 and pay the advance tax thereon. Due process of law has been observed by the Assessing Officer in respect of this default and the assessee offered the same explanation as in the case of penalty relating to late filing of returns of income. The Assessing Officer followed the same reasoning and held that the assessee had without reasonable cause failed to file estimate of advance tax and consequently levied penalty of Rs. 610 under section 273(2)(b) of the Income-tax Act, 1961. 6. On appeal, the assessee pleaded that as the returns were all filed voluntarily no penalty should be levied. He also pointed out certain arithmetical inaccuracy in computing the period of default. The Dy. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnical delay in filing the appeal. 9. The learned departmental representative has been duly heard and he has supported the orders of the authorities. It was further submitted that the decision of the Tribunal, Pune Bench in the case of Deter Deter is not applicable because returns in that case were all filed during the course of Amnesty Scheme, whereas the returns in the instant case were all filed on 16-1-1982, i.e., even before the Amnesty Scheme came into force in May 1985. Therefore, the assessee has to show reasonable cause for the delay to get relief and even section 273A would be applicable only in case where the assessee comes forward voluntarily and in good faith made full and true disclosure of income. It was also pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is an equity based provision. Relying on the decision of Rajasthan High Court in the case of CIT v. Rawat Singh Sons [1979] 120 ITR 65 and Addl. CIT v. Sohanlal Dugar [1985] 152 ITR 635, he submitted that filing of return voluntarily itself is a reasonable cause and therefore, penalty is not leviable in terms of the decision of the Supreme Court in the case of Hindustan Steel Ltd. 11. We have duly considered the submissions of the parties. Although the assessee has not filed returns during the period in which the Amnesty Scheme was in operation but filed returns earlier on 6-1-1982, nonetheless, the series of circulars issued by the CBDT, especially Circular No. 453 dated 4-4-1986 has appreciated the very good response from the taxpay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of new assessees who come forward themselves to show their income in good faith and co-operate in any enquiry relating to the assessment of their income. Liberal view was also to be adopted in respect of filing of estimate and payment of advance tax. 12. The income by way of bank interest constituted bulk of the income assessed in the assessment year 1974-75 as unexplained investment at Rs. 1,08,500. The plea taken by the assessee was that it represented accumulated interest income over all these years probably under section 801, of the Income-tax Act, 1961 subject to limits prescribed thereunder. Except interest income, other income is not substantial. Therefore, the plea of ignorance of law or plea of entertaining bona fide belie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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