9911796707
TMI Blog1984 (10) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, but they were filed only on 30th Jan., 1969 and 10th Jan., 1972 respectively. The assessee also did not file the voluntary estimates of advance tax as required by s. 212 for the asst. yrs. 1967-1968 to 1969-70. The ITO, therefore, in the course of the assessment proceedings, initiated action for penalty for late filing of the returns for the asst. yrs. 1968-69 and 1969-70 and for non-filing of the voluntary advance tax estimates for the asst. yrs. 1967-68, 1968-69 and 1969-70. In response to the show cause notice, the assessee submitted before the ITO that there was a raid on the assessee's premises by the Customs authorities sometime in February, 1967 when all the accounts books and documents were seized and later on handed over to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under s. 271(1) (a) for the asst. yrs. 1968-69 and 1969-70 which amounted to Rs. 12,285 and Rs. 3,72,515 respectively. He also imposed penalties under s. 273(b) for non-filing of the voluntary advance-tax estimates which amounted to Rs. 40,700 for the asst. yrs. 1967-68 and Rs. 11,520 for the asst. yr. 1968-69 and Rs. 55,900 for the asst. yrs. 1969-70. When the matter went up in appeal, the CIT (A) held that since interest for the late filing of the returns for the asst. yrs. 1968-69 and 1969-70 and for non-filing of the voluntary advance tax estimates for the asst. yrs. 1967-68 to 1969-70 had been waived, there was no justification for the levy of any penalty for these defaults. He, therefore, cancelled the penalties imposed by the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome in time for these years did not arise out of any wilful desire to escape taxation and was due to circumstances beyond his control. As such, there will be no interest charged. The entire interest would be waived. Int. u/s 217 I am satisfied that this is a fit case for waiver of interest for all the three years viz. 1967-68 to 1969-70." Proceeding further, Shri Harish submitted that if the IAC was satisfied that the assessee's failure to furnish returns of total income within time for the asst. yrs. 1968-69 and 1969-70 did not arise out of any wilful desire to avoid taxation and was due to circumstances beyond his control, there was no question of any penalty under s. 271 (1) (a). He also submitted that once the IAC was satisfied that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reasonable cause. Viewed in this context, it is not under dispute that the IAC by order dt. 31st May, 1975 was satisfied that the assessee's failure to furnish the returns of total income for the asst. yrs. 1968-69 and 1969-70 within time was due to circumstances beyond his control, and this was a fit case for waiver of interest under s. 217 for all the three asst. yrs. 1967-68 to 1969-70. It might perhaps be not out of place to mention here that while the charge of interest is generally automatic and it is only in extraordinary circumstances that the interest is waived, the imposition of penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding and as laid down by the Hon'ble Supreme Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of which he suffered grievous bodily injuries, had to undergo three operations in November, 1969, September, 1971 and March, 1972, we have no hesitation in coming to the conclusion that the assessee's defaults of not filing the returns of total income within time for the asst. yrs. 1968-69 and 1969-70 and the defaults of not filing voluntary estimates of advance tax for the asst. yr. 1967-68 to 1969-70 were not without reasonable cause. Considering all this and looking to the totality of the facts and circumstances, we are of the view that the penalties under s. 271 (1) (a) for the asst. yrs. 1968-69 and 1969-70 and under s. 273 (b) for the asst. yrs. 1967-68 to 1969-70 were not justified and were rightly cancelled in appeal by the CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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