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TMI Blog1971 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was a partner in the firm of St. George's Oil, Flour and Rice Mills. The first year of assessment of the firm was 1958-59; the firm filed an application for registration of the firm on December 23, 1957; an order granting registration was passed on February 28,1963; the assessee filed his individual return on March 12, 1963, showing his share of income from the firm; the Income-tax Officer initiated proceedings for imposition of penalty under section 271(1)(a) on the ground that the assessee defaulted to file the return within the time allowed. A show-cause notice was issued to the assessee asking him to show cause why penalty should not be imposed. The assessee filed an explanation stating that he was " under the honest belief that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Appellate Assistant Commissioner. The Tribunal reduced the quantum of the penalty. Section 271(1)(a) provides: " 271. (1) If the Income-tax Officer or the Appellate Assistant Commissioner, in the course of any proceedings under this Act, is satisfied that any person (a) has without reasonable cause failed to furnish the return of total income which he was required to furnish under sub-section (1) of section 139 or by notice given under sub-section (2) of section 139 or section 148 or has without reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section (1) of section 139 or by such notice, as the case may be, or ... he may direct that such person shall pay by way of penalty,-... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplete the assessment within the period specified in the Act. In other words, the object of the legislature in insisting upon the assessee filing the return within the time and in the manner prescribed is to enable the Income-tax Officer to complete the assessment within a period of four years as specified in the Act and that object will be frustrated unless the assessee files the return within the time allowed and in the manner prescribed. To carry out the object of the legislature it is necessary to attach a sanction for the failure to fulfil any of the two conditions. If the object is clear, we do not think the use of the conjunctive word " and " in the sub-section is conclusive. The word " and " has generally a cumulative sense, and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5, 1958. The explanation given by the assessee for not filing the return on or before July 5, 1958, was that he was under the bona fide belief that the return need be filed only after registration was granted to the firm and that if the firm was treated as an unregistered firm he need not file any individual return at all. The explanation of the assessee that he bona fide believed that he need file the return only when registration was granted to the firm was in a way accepted by the Tribunal because the Tribunal said that " there are several mitigating circumstances for the delay in filing the return ". We do not understand what those mitigating circumstances are except that the assessee had reasonable ground for believing that he need fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason if it were so." In Criminal Law by Glanville Williams, at page 385, it is stated : " The view that everyone is presumed to know the law is now generally rejected; it is not a true proposition of law, and even if it were, it would only be a legal fiction, not a moral justification. Lord Mansfield drily observed that ' it would be very hard upon the profession, if the law was so certain, that everybody knew it ' ; and Maule J. is credited with the observation that 'everybody is presumed to know the law except. His Majesty's judges, who have a Court of Appeal set over them to put them right.' The idea that the law can be known by everyone is to-day, in the ' planned ' and ' welfare ' State, more ludicrous than ever." In Hindustan St ..... X X X X Extracts X X X X X X X X Extracts X X X X
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