9911796707
TMI Blog1976 (9) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts necessary for the understanding of the above question are as follows: The case relates to two assessment years 1965-66 and 1966-67. For the first assessment year, the income-tax return was due on September 30,1965, but the same was filed on July 1, 1967, i.e., after a delay Of about 21 months. For the second assessment year, the return was due on September 30, 1966, but the same was filed on October 17, 1967, i.e., after a delay of about 12 months. The Income-tax Officer initiated penalty proceedings against the assessee under section 271(1)(a) of the Act and levied penalty of Rs. 5,704 for the former year and Rs. 5,334 for the latter year. The assessee contested the levy of penalty putting forward the contention that the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section (1) of section 139 or by such notice, as the case may be,....... he may direct that such person shall pay by way of penalty,-- (i).... in addition to the amount of the tax, if any, payable by him, a sum equal to two per cent. of the tax for every month during which the default continued, but not exceeding in the aggregate fifty per cent. of the tax......" Thus, it will be seen that this provision attracts the liability to penalty in two circumstances: one is, failure to furnish the return itself without reasonable cause and the second is, failure to furnish the return within the time allowed and in the manner required by sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sconceived. We are not concerned in the present case with whether the collection of interest by the Income-tax Officer under the proviso to section 139(1) was correct or not. All that we are pointing out is that there was no application by the assessee for extension of time for submitting the returns and consequently there was no order by the Income-tax Officer extending the time for submission of the returns. So long as the returns were not filed before the dates mentioned in section 139(1) of the Act and so long as there had been no order by the Income-tax Officer extending the time for filing the returns, it must necessarily follow that the returns filed by the assessee had not been filed within the time allowed and in the manner require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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