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TMI Blog1995 (8) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... r delay of submission of return at Rs. 51,600. Before the CIT(A) the assessees argued that there was no time limit prescribed under s. 139(4) for filing of the return of income as the time limit is prescribed in s. 139(3). It was, further argued that due to lack of competent accountant audit of the accounts could not be completed in time. The assessee also relied on the decision of the Calcutta High Court in the case of Calcutta Chromotype Pvt. Ltd. vs. ITO (1971) 80 ITR 627 (Cal) and the decision of the Allahabad High Court in the case of CIT vs. Anchor Pressing (P) Ltd. (1982) 26 CTR (All) 447 : (1982) 136 ITR 505 (All). The CIT(A), however, did not accept this submission of the assessee as, according to him, sub-s. (4A) of s. 139 provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-s. (1) would become totally redundant. The learned CIT(A) further pointed out that it was the duty of the trustees to maintain the accounts and file the return of income in time. It has not been proved by evidence that any effort was made by the trustees to appoint a competent accountant for the purpose of maintaining accounts as there is no evidence on record to support the arguments of the assessees. According to him, as no reasonable cause has been proved for non-furnishing the returns of income in time, the AO was justified in imposing the penalty under s. 272A(2)(e). He dismissed the appeals. 4. The learned counsel for the assessee reiterated the submissions made before the learned CIT(A). He further adverted to s. 139(4A) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im exemptions under ss. 11 and 12 which is evident from col. 13 of the said Return Form. According to him, the idea behind this sub-section is where a charitable or religious trust is not entitled to the benefits of ss. 11 and 12 then only it has to file a return within the time stipulated under s. 139(1). He submitted that a charitable or religious trust once registered with the Department as per s. 12A continues to get the benefit of ss. 11 and 12 provided its income does not fall under s. 13 of the Act or did not apply the income for charitable purposes. According to him, though a trust is charitable or religious, it may in certain years contravene the obligations to get the benefit of ss. 11 and 12 (s. 13). In that case, he submitted, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that the cause shown by the assessee should also be accepted even if it is without evidence. The learned Departmental Representative strongly supported the orders of the learned CIT(A). 5. I have considered the rival submission, facts and material on record. In my opinion, the stand taken by the learned counsel for the assessees cannot be said to be without any force. In any case the view taken by the learned CIT(A) can also be said to be a view which supports the levy of penalty. But when two views are possible, I am of the opinion that the issue should be decided in favour of the assessee in view of the Supreme Court decision in the case of CIT vs. Vegetable Products 1973 CTR (SC) 177 : (1973) 88 ITR 192 (SC). I, therefore, canc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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