9911796707
TMI Blog1981 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ause failed to furnish his return of income or has without reasonable cause failed to furnish it within the time limited by the Act or by a statutory notice. The quantum of penalty leviable in respect of delayed submission of return is to be measured in terms of a percentage of the assessed tax on a time basis. The precise provision is to the following effect. The penalty levied would be a sum equal to 2% of the assessed tax for every month during which the default continues. The quantification of the penalty on the basis of every month's default is an echo of the very basis for the levy itself, namely, non-submission of a return or delayed submission of a return, the laches of the assessee in both cases being without reasonable cause. In o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of December, 1961, can be regarded as the time requisite for the assessee to prepare and file the return of income for 1961-62. With this date as the starting point, the Tribunal went into the question as to how long was the delay on the part of the assessee in the matter of filing the return and as to what extent the assessee was in a position to make out that the delay was not unreasonable. The Tribunal took note of the fact that the return actually came to be filed by the assessee for the year only on April 15, 1964. This time lag had to be explained by the assessee. It was common ground that on April 28, 1962, there was a raid on the assessee's business premises by the Foreign Exchange Regulation Authorities in the course of which all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return at least during this period of three months. Having discussed the delay or default in the filing of the return from the point of view of reasonable cause therefor, the Tribunal was of the view that penalty under section 271(1)(a) should be quantified at the rate of 2% on the assessed tax for the three months of January, February and March, 1962. Once we accept the finding of the Tribunal that the assessee had reasonable cause for the delay in the furnishing of the return for the entire period of the delay excepting for the first three months in the year 1962, it would follow therefrom that penalty in terms of the provisions of section 271(1)(a) has got to be quantified only with reference to those three months default. Penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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