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TMI Blog2006 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... h, Guwahati, in I.T.A. No. 10 (Gau) of 1997. The petitioner was the income-tax assessee under the Act and for the assessment year 1987-88 the petitioner was required to file its return on or before July 31, 1987, under section 139 of the Act. However, the return of income was filed on August 25, 1992, and thereafter the assessment was completed. For the delayed filing of the return, interest under section 139(8) of the Act was levied and the petitioner filed an application for waiver of interest under the Act and the matter was taken in revision before the Commissioner of Income-tax and interest was waived by the Commissioner of Income-tax by observing as follows: "In this respect a detailed report was also called from the Deputy Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer was restored and hence the present appeal. The broad facts of the present case as stated above are not in dispute. The proceedings under sections 139(8)(a) and 271(1)(a) of the Act for imposition of interest and penalty were initiated against the petitioner for the delayed filing of the return. The submission of Dr. A.K. Saraf is that once the Revenue held that there was sufficient cause on the part of the petitioner for delayed filing of the return, the same authority cannot take a different view to hold that there was no reasonable cause for the delayed filing of the return. It is submitted that imposition of interest is compensatory in nature whereas imposition of penalty is quasi-criminal. Mr. U. Bhuyan, learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a fide belief that the offender is not liable to act in the manner prescribed by the statute." Dr. Saraf has placed reliance on the observations of the hon'ble Patna High Court in the case of Smt. Shibani Dutta v. CIT (No. 1) [1996] 217 ITR 93 wherein it was observed: "Imposition of penalty as contemplated under section 271(1)(a) of the Act is not compensatory but punitive and the proceeding to impose penalty is quasi-criminal. It is well-settled that the liability to pay penalty does not arise merely on proof of default in filing the return on time and the discretionary power of the authority to impose penalty for failure to file the return on time is to be exercised judicially and on a consideration of all the relevant circumstances. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d good for proceedings under other sections as well. Therefore, the order of the Commissioner sustaining the levy of interest under section 139(8)(a) was liable to be set aside." The Karnataka High Court decision was relied upon by the Punjab and Haryana High Court in the case of Dalu Ram Ram Chander v. CIT reported in [1996] 220 ITR 560 to hold that in such an eventuality a question of law arises and needs to be determined and the learned Tribunal was asked to refer the aforesaid question of law. The above decision is not known to Dr. Saraf and Dr. Saraf submits that in spite of efforts made by him, he could not locate the final decision. The proviso to section 139(8) of the Act provides that the Assessing Officer may, in such cases and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y cause which removing officer may deem sufficient, but means legal cause, specifically relating to and affecting administration of office, of substantial nature directly affecting public's rights and interests, touching officer's qualifications or his performance of duties, and showing that he is not fit or proper to hold office." In Black's Law Dictionary, the words "reasonable cause" have been defined as follows: "Reasonable cause. As basis for arrest without warrant, is such state of facts as would lead man of ordinary care and prudence to believe and conscientiously entertain honest and strong suspicion that person sought to be arrested is guilty of crime." The law makers have used two different words in two different provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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