TMI Blog1985 (7) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived late and what was its reason ? (3) Whether there was any evidence on record to prove that Shri Ramniwas Dhamani, assessee's munim, remained ill throughout the period of delay in submitting the return ? (4) Whether the Tribunal was correct in rejecting the Department's appeal under the facts and circumstances of the present case ? " The assessee, M/s. New Friends Co., Jaipur, was a registered firm and carried on business in sale of liquor. The return for the assessment year 1968-69 which should have been filed on or before September 30, 1968, by the assessee, was filed late on March 1, 1969, and thus there was a delay of five months in filing of the return. While completing the assessment proceedings, the Income-tax Officer i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that there was reasonable cause for the delay which occurred in filing the return by the assessee. The Tribunal consequently dismissed the appeal filed by the Department and accepted the appeal filed by the assessee and set aside the penalty, vide its order dated April 10, 1977. An application filed by the Commissioner of Income-tax before the Tribunal for making a reference to this court, was rejected by its order dated August 30, 1977, on the ground that the finding arrived at by the Tribunal on the question of reasonableness of delay, was purely finding of fact and no question of law arose out of the order of the Tribunal. Under these circumstances the Commissioner of Income-tax has filed the present application under section 256( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpleted; and in the second place, the Tribunal also accepted the explanation furnished by the assessee that there were a number of branches of the assessee-firm and the statements of sale from those branches could not be collected within the time and after the sale statements were received by the assessee, the accounts were completed and thereafter the return was filed. It was also held by the Tribunal that the conduct of the assessee was neither contumacious nor dishonest, and also the fact that the assessee voluntarily filed its return, although delayed, showed its bona fides. Once the order of the Tribunal exercising the discretion regarding the reasonableness of the cause for delay in filing the return is based on grounds and material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved in the aforesaid case that even if the assessee had failed to furnish his explanation before the Income-tax Officer, it was open to him to place materials for the first time before the Appellate Assistant Commissioner who could record his satisfaction for existence of reasonable cause, and once the Tribunal had held that there was sufficient cause for the delay, the matter was concluded by a finding of fact. In Addl. CIT v. Aggarwal Misthan Bhandar [1981] 131 ITR 619 (Raj), a Bench of this court, while holding that when the Tribunal has exercised its discretion in accepting the explanation of the assessee for the delay in filing the return, observed that no question of law arose out of the order of the Tribunal. In that case, this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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