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TMI Blog2006 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... ee mainly on the question of justification for penalty under section 271(1)(a) of the Income-tax Act, 1961 ("the Act"). 2. Original assessment in the case of the assessee was made on March 13, 1978. On receipt of information that income in the form of investment in construction of building and installation of plant and machinery had escaped assessment, a notice was issued to the assessee on February 14, 1980. The assessee did not file any return. Therefore, the assessment was framed under section 144 of the Act. The assessee filed an application under section 146 of the Act but still failed to file any return. The assessment was again framed on March 23, 1984. The assessee again moved an application under section 146 of the Act and file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted a letter before the Assessing Officer to treat the original return in response to notice issued under section 148. Nor has it been contended that the return filed on November 3, 1984, was a duplicate return. Thus, the factum of delay in filing the return of income late by 56 months is accepted. But there is absolutely no explanation either before the authorities below or even before this Bench as to why the assessee could not file the return of income in time. No reasons for delay have at all been given by the assessee. Not a word has been said about the merits of the case. In the case of Smt. Kamla Vati v. CIT [1978] 111 ITR 248, the hon'ble Punjab and Haryana High Court has held that doctrine of mens rea has no application to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable cause for non-imposition of penalty for failure to file the return in time. In this context, the explanation offered by the assessee to the notice issued under section 271(1)(a) of the Act becomes relevant." 7. A similar view has been taken by the Bombay High Court in Mckenzies Ltd. and Oriental Timber Trading Corporation P. Ltd. v. CIT [2000] 242 ITR 669, at page 671, wherein it was observed "The finding regarding reasonable cause is ordinarily a finding of fact. In the instant case, it is clear from the statement of the case as also the order of the Tribunal that the assessee did not submit any explanation whatsoever about the reasonable cause for the delay of 12 months in submission of the return. The assessee even did no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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