9911796707
TMI Blog1983 (6) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Director's fee from F.M. Chinoy Co. (P.) Ltd. and Bombay Garage (P.) Ltd. (iv) Interest on S.B. account. For the previous year relevant to the assessment year 1975-76 the assessee was under obligation to file the return under section 139(1) of the Act. The ITO issued notice under section 139(2) on 1-5-1975 directing the assessee to file the return within 30 days from the date of the receipt of the notice. The notice was served on 1-5-1975. So, the return was to be filed by the assessee on or before 31-5-1975. The assessee failed to file the return within time. The ITO issued notices under section 142(1) of the Act. The first notice was issued on 22-8-1975 requesting the assessee to make compliance by 4-9-1975. Thereafter, notice wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1975-76 on 2-11-1974 and he also appeared before the learned AAC on 9-12-1976. The learned ITO after considering all the facts was of the view that it was a fit case for levying the penalty. Thus, he imposed a penalty of Rs. 46,035 under section 271(1)(a). 5. Before the learned Commissioner (Appeals), again it was contended that the appellant was an illiterate person and as such he had relied on his representatives. Thus, it was contended that there were reasonable causes which prevented the assessee from filing the return. The learned Commissioner (Appeals) was not satisfied with the contention advanced by the appellant. According to him, there was no evidence to show that the assessee had signed the return and had instructed his repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntumacious and dishonest. Thus, it was pointed out that the finding of the learned Commissioner (Appeals) is quite correct. 8. We have considered the rival submissions and perused the entire material on record. The facts as found by the authorities below are not in dispute. The assessee derives income from personal business which was estimated at Rs. 50,000. There was also interest income. He was also getting director's fees from the above two companies. There was also interest income on S.B. account. The assessment was completed at Rs. 2,30,173. The same was sustained in appeal. When the assessee failed to file the return under section 139(1), the ITO issued notice under section 139(2) on 1-5-1975. It was served upon the assessee on 12-5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definite view that the explanation of the assessee is not only false but the assessee in conscious disregard of his obligation failed to file the return under section 139(2). The assessee was earning income from four sources discussed above. He was director of two companies. The assessment was completed on a total income of Rs. 2,29,982. It means the assessee was under obligation to file the return, within time as required under section 139(1). When the assessee failed to file such return, notice under section 139(2) was issued. Once the notice was served under section 139(2), it was the duty of the assessee to file the return. If there was any difficulty in not filing the return, the assessee might have approached the ITO for extendin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or not. No explanation whatsoever was given at any stage as to why the assessee failed to approach his previous authorised representative after service of notices under section 139(2). The assessee failed to show by any evidence whatsoever that he was illiterate. As a matter of fact, this averment is false on the face of the record. The assessee is director in the above two companies. He was also having considerable income from personal business. Under the circumstances, it does not stand to reason that the assessee could be an illiterate person. In any view of the matter, before the authorities below or the Tribunal, no evidence was produced to show that the assessee was really an illiterate person. For the sake of argument it may be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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