9911796707
TMI Blog1980 (8) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 271(1)(i) of the Income-tax Act, 1961 ? " The assessee was a partnership firm. It was reconstituted with effect from March 1, 1972. For the assessment year 1972-73, the assessee filed return for the period March 1, 1972, to March 31, 1972, on November 9, 1972. Another return was filed by the assessee for the earlier portion of the assessment year on March 7, 1974. In these two returns, the assessee declared its income for the two periods at Rs. 2,038 and Rs. 61,927, respectively. The ITO considered that since there was only a change in the constitution of the firm, the assessment was to be framed for the entire period from April 1, 1971, to March 31, 1972. Vide his order dated March 25, 1975, he framed an assessment on an income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed, Rs. 18,223." The assessee went up in appeal which was dismissed by the AAC with the following observations: " As to the complaint filed before the S. S. P. neither any follow-up action has been taken by the partners nor the other partner is aware of it. On my specific query as to notice received by the partners from the arbitrators regarding the attendance of proceedings, the assessee showed its helplessness to place any such evidence before me. Thus, in the absence of any evidence to show that the books of account were lying with the arbitrator and that too till February, 1974, which is a long period, I am unable to accept the assessee's version. Coming to the counsel's plea that as the return for the latter period was file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le return, inasmuch as there was merely a change in the constitution of the firm and there was no dissolution of the firm on February 28, 1972. This being so, the return filed by the assessee was incomplete with reference to the time and income, both. Neither the total income of the whole year was shown nor the full period was written in the return dated November 9, 1972. When according to the Income-tax Officer himself the whole accounting period constituted one unit, as there was merely a change in the constitution of the firm, he was not justified to split the accounting period for the purpose of filing the return. Charge against the assessee is that the return was not filed within the time for the first period. In the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner required by sub-section (1) of section 139 or by such notice, as the case may be." The important words of this section are " within the time allowed and in the manner required by sub-section (1) of section 139 ........" Section 139(1) reads as under: " 139. (1) Every person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed (a) in the case of every person whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is return of total income earned by an assessee for the financial year immediately preceding the assessment year. If the return filed by it does not comply with all these requirements, it would be no return in the eye of law. Once this conclusion is arrived at, it becomes obvious that an assessee who deliberately files a return for a part of a year, which does not disclose his income for the entire financial year prior to the assessment year, would be deemed to have failed to furnish a return within the meaning of s. 271(1)(a) of the Act. We would like to make it clear that we are only referring to the nature of return envisaged to be filed and are not adverting to the fact whether there was any reasonable cause or not for its non-filing. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
