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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 ..... holding the imposition of penalty. - - - - - Dated:- 26-6-2006 - Judge(s) : P. G. AGARWAL., T. NANDAKUMAR SINGH. JUDGMENT The judgment of the court was delivered by P.G. Agarwal J.- Heard. Dr. A.K. Saraf, learned senior counsel assisted by Mr. S. Chetia appearing on behalf of the appellant, and Mr. U. Bhuyan, learned standing counsel for the respondent. This is an appeal under section 260A of the Income-tax Act, 1961, for short, the Act, and it is directed against the judgment and order dated May 31, 2002, passed by the Income-tax Appellate Tribunal, Gauhati Bench, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued to the petitioner under section 274 read with section 271(1)(a) of the Act for imposition of penalty and vide order dated March 31,1994, penalty to the tune of Rs. 5,58,070 was imposed. The matter was taken in appeal before the Commissioner of Income-tax and vide order dated June 26,1996, the appeal was allowed against the order of the imposition of penalty under section 271(1)(a) of the Act. The matter was taken before the Tribunal by the Revenue and vide order dated May 31, 2002, the order of the Commissioner of Income-tax (Appeals) was set aside and that of the Assessing 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)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonableness of it in extending that benefit to the levy of interest under section 139(8)(a), was not logical. If it was reasonable for giving relief to the assessee under a penal provision, it should be held reasonable in other cases as well. In correctly understanding the two provisions, the waiver or reduction that might ultimately result under section 139(8)(a) or section 271(1)(a) was relatable to the delay and not to any other cause. Further, if the delay was explained reasonably, and that could be accepted in respect of one provision of the Act, the same explanations should hold 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 lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure." We, thus, find that in rule 117A(v) the word used is sufficient cause or reason whereas under section 273B the word used is reasonable cause. In Black's Law Dictionary, the words "sufficient cause" have been defined as follows: "Sufficient cause. With respect to right to remove officers does not mean any cause which removing officer may deem sufficient, but means legal cause, specifically relating to and affecting administration of office, of subst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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