TMI Blog1997 (12) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... 1977-78. The facts in brief are that the petitioner is an assessee under GIR No. S. 1860/SKL on the file of the Income-tax Officer, Srikakulam (subsequently transferred to the Income-tax Officer, "D" Ward, Vizianagaram), for the assessment year 1977-78. Her income from property was Rs. 848 and from other sources Rs. 890. She earned Rs. 53,929 from sale of land and incurred an interest of Rs. 27,271 on the borrowed capital for construction of a cinema hall. It is her case that she was under the impression that there is no taxable income for the assessment year 1977-78. However, she was advised that the profit on sale of land would be considered as capital gain within the meaning of section 45 of the Act and it is chargeable to tax. As rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t she filed the return voluntarily without any notice under section 139(2) or under section 148 of the Act making a true and full disclosure of her income. It is also her case that claiming allowance under section 80T of the Act at 35 per cent. while it ought to be 25 per cent. would not amount to non-disclosure of true and full income. Respondent No. 1 by the impugned order dated March 11, 1988, rejected her petition on three grounds, namely, (a) that she has not shown the correct income in the return, (b) that the payment of tax rightfully due from her was deliberately postponed till the completion of the assessment, and (c) that there was no co-operation from her in the matter of recovery of taxes. She submits that the impugned order is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16,796 under section 139(8) of the Act? (ii) Whether she is not liable to pay a penalty of Rs. 33,592 under section 271(1)(a) of the Act? Point No. 1 : It is not in dispute that the petitioner filed her return on December 29, 1983, for the assessment year 1977-78. Hence, there is a delay of 76 months in filing the return. The legitimate tax due to the exchequer has thus been withheld without any lawful excuse. Her plea that she was under the impression that there is no taxable income for the assessment year 1977-78 or that the consideration on sale of land amounting to Rs. 53,929 is not taxable or that the interest payment of Rs. 27,271 constituted a business loss, was not accepted by the Revenue and rightly so. We, therefore, find just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 271 for failure, without reasonable cause to furnish the return of total income which he was required to furnish under sub-section (1) of section 139; or.... (iii) reduce or waive the amount of interest paid or payable under sub-section (8) of section 139 or section 215, or section 217 or the penalty imposed or imposable under section 273, if he is satisfied that such person--- (a) in the case referred to in clause (i) has, prior to the issue of a notice to him under sub-section (2) of section 139, voluntarily and in good faith made full and true disclosure of his income;... (c) in the cases referred to in clause (iii) has, prior to the issue of a notice to him under sub-section (2) of section 139, or where no such notice has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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