TMI Blog1992 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... uding notice under section 142(1) dated 19-10-1984, second notice under section 142(1) dated 24-11-1984, third notice under section 142(1) dated 15-5-1986, reply dated 21-5-1986, reply to notices under section 271(1)(a) and 271(1)(b) copy of the assessment order, a copy of the order of the New Delhi 'A' Bench in the case of Handloom Intensive Development (Bijnore) Ltd. [IT Appeal Nos. 4306 to 4309 (Delhi) of 1989]. The first leg of the arguments advanced before us was that penalty was discretionary. Especially arguing in ITA No. 1000(A)/1990, it was emphasised that there were 166 production centres and 200 show-rooms and compilation of material to enable the assessee to file the return in time was a gigantic task to be completed and that, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Income-tax Act, that return has always to be accompanied by the audited Profit and Loss account and Balance-sheet. The only requirement of law is that if an audit has been completed, audited accounts should be filed alongwith the return of income.The CIT(A), therefore, held that there was reasonable cause, which prevented the assessee from filing the return within the extended period. From the facts on record, we notice that non-auditing of the accounts was not a major hurdle in the assessee's way of filing the return of income, because ultimately when the return was filed on 3-12-1984, no statutory auditor had been appointed. The argument of the learned counsel was that subsequent notice under section 142(1) condones the default ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 142(1) for default of which the penalty levied, was merited, calling for no interference from us. Here also, we hold that the distinction sought to be made out before us between a Govt. company and a non-Government company is not justified because the law should be equally applied to all, unless any exception is laid down in the Statute itself. Since there is no such distinction laid down in the Income-tax Act, the failure to comply with the statutory requirement cannot be condoned by us simply because it is a Govt. company. The contentions to the contrary, therefore, are not accepted since they are not tenable and we find enough justification for the departmental authorities to have levied the penalty as they did in this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Government company, no preferential treatment can be given. The non-appointment of statutory auditors was again no reasonable explanation for not having filed the Statement of Advance-tax and for not having complied with requirement of law. The assessee was clearly in default and we decline to interfere with the orders passed by the Departmental Authorities in this regard. The appeal fails and is dismissed. 5. In ITA No. 1506 (All.)/ 1989, there is no dispute about the facts. The penalty has been levied for non-submission of return in time. The following grounds have been taken : " 1. That the appellate order is contrary to law and facts. 2. That on the facts and circumstances of the case, the learned CIT (Appeals) erred in sustai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and he levied a sum of Rs. 4.15,800 under section 271(1)(a) of the Act. 6. Before the first Appellate Authority, several contentions were raised. The learned First Appellate Authority in a speaking order running in four pages held that the appellant was clearly in default for the period 1-4-1985 and ending on 25-2-1986. There was an unexplained delay of 10 completed months for which period the penalty was exigible. The Assessing Officer was directed to recompute the penalty. The first Appellate Authority also held that penalty was not only leviable for belated return, but also for not furnishing the return. Against this order, the assessee is in appeal before us. Various arguments were raised. These arguments, as held by us above, also, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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