1999 (9) TMI 33

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..... ny material to hold that there was no reasonable cause for the delay in the filing of the return of income ? 3. Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that there was no reasonable cause for the delay in the filing of the return of income was reasonable ? 4. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the delay in the filing of return for earlier year cannot constitute a reasonable cause for the delay in filing of the return for the current year ?" The facts of the case are that in respect of the assessment year 1981-82 the return was due to be filed on June 30, 1981. Form No. 6 was filed seeking extension of time up to Se .....

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..... me of the earlier years and, therefore, there was no justification in not taking proper care to file the return. Ultimately, the Tribunal also rejected the appeal observing that if the assessee was serious about tax matters he could have got the accounts finalised and filed the returns in time and still if there was any need for seeking any extension he could have filed Form No. 6 before the time granted at the first instance was over. The contention that the accounts of the previous year were not complete itself could be a ground for non-levy of penalty was rejected in view of the judgment of the Gujarat High Court in the case of CIT v. J. L. Trivedi and Sons [1994] 210 ITR 112. Arguments of both learned counsel for the parties heard. .....

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..... . At that time no application for extension was moved giving reason that because of the death of the managing partner, the accounts could not be completed. The contention which is now raised is that if the accounts of one year are not complete then for the delay in furnishing the return for the subsequent year the penalty cannot be levied. The Tribunal has proceeded on the basis that for the year 1981-82 also, the assessee should have moved for extension of time, before the expiry of the time already granted, i.e., September 30, 1981. Penalty for late submission of return can be imposed if the assessee fails to show a reasonable cause. Even illness can be a reasonable cause, but it has to be established that it was because of the illness th .....

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