TMI Blog1997 (2) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... filed its return for the assessment year 1976-77 on June 30, 1978, showing a loss of Rs. 1,31,740. The return was due to be filed on June 30, 1976, as per the provisions contained in section 139(4A) read with section 139(1) of the Income-tax Act, 1961. The assessment was completed by computing the net loss as Rs. 85,402. Since the return was due on June 30, 1976, and filed after two years, penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, no penalty could be levied for delayed filing of the return under section 271(1)(a), which also did not find favour with the Tribunal. In the aforesaid circumstances, the Tribunal, at the instance of the assessee, has submitted the statement of case and referred the following question of law arising out of its appellate order under section 256(1) of the Act. " Whether the Tribunal was justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not exceeding one per cent. of the total income computed under the Act. It further envisages that in the cases of such assessees, for the purposes of levy of penalty, the computation of income must be such which results without giving effect to the provisions of sections 11 and 12 of the Act. This is also the requirement of sub-section (4A) of section 139, which gives rise to an obligation on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent case were due under section 139(4A). Section 139(4A) makes it further clear that in such cases the return is considered to be one required under sub-section (1). Reading the two provisions together makes it further clear that the fact that ultimately the entire income is exempt from payment of tax by invoking the provisions of sections 11 and 12 has no bearing on the question of levy of penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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