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TMI Blog1977 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) since the income returned was below the taxable limit, notwithstanding that the assessed income was chargeable to tax and on this ground to hold that no penalty was leviable under section 271(1)(a) ? " The assessee is a firm. It was assessed as an unregistered firm for the assessment year 1963-64. For the assessment year 1966-67, the assessee was assessed as a registered firm. In 1963-64, the due date of filing the return under section 139(1) of the Act was June 30, 1963, but the assessee filed the return on December 10, 1964, showing an income of Rs. 2,878. Ultimately, the income was assessed at Rs. 27,807. In 1966-67, the due date of filing the return under section 139(1) of the Act was June 30, 1967, but the assessee filed the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty passed by the Appellate Assistant Commissioner on some other ground, namely, that in the assessment year 1963-64, the assessee submitted return as an unregistered firm and, therefore, the taxable limit was Rs. 6,000. The assessee, however, showed the total income at Rs. 2,878 and though the assessed income was Rs. 27,807, the figure swelled because of certain additions made to the trading account on percentage basis and also due to certain cash credits which the assessee could not prove. Similarly, for the assessment year 1966-67 the assessee filed the return as a registered firm and, therefore, the taxable limit was Rs. 25,000 and though the assessee showed the total income at Rs. 14,817, the total income assessed was Rs. 48,772 and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argeable to income-tax. The question arises as to which income is contemplated by this provision, the income which the assessee believes to be his income or which is finally assessed by the Income-tax Officer. It is clear that at the time when a person is required to file a voluntary return, no assessment has yet been made against him. He is thus to be guided by what he himself believes to be his income. It is possible and it happens very frequently that an assessee may not consider a particular item to be his income and yet the Income-tax Officer may hold otherwise. In such a case, if what he considers to be his income is less than the amount which is not chargeable to income-tax, he is not required to file a voluntary return even if the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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