TMI Blog1973 (7) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... represented by its managing partner. The petitioner-firm did not file returns for the assessment years 1968-69 and 1969-70 within the time allowed under section 139(1) of the Act. The Income-tax Officer issued a notice under section 148 of the Act stating that the income chargeable to tax for the assessment years in question has escaped assessment within the meaning of section 147 of the Act. The petitioner-firm was asked to submit returns for the said two years within 30 days from the date of receipt of the notice. The petitioner then filed returns for both the assessment years on January 16, 1971, and the Income-tax Officer completed the assessment on January 29, 1971, and charged interest of Rs. 5,256 for the assessment year 1968-69 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (i) or clause (ii) of the proviso to section 139(1) of the Act. It is only when a notice was issued informing him that the income chargeable to tax for the two assessment years had escaped assessment under section 147 that he chose to file the returns hoping presumably that he can escape the levy of penalty. Sub-section (4) of section 139 lays down: " (4)(a) Any person who has not furnished a return within the time allowed to him under sub-section (1) or sub-section (2) may, before the assessment is made, furnish the return for any previous year at any time before the end of the period specified in clause (b), and the provisions of clause (iii) of the proviso to sub-section (1) shall apply in every such case." Clause (iii) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice issued by the Income-tax Officer under section 148. There is nothing in the language of clause (iii) of the proviso to section 139(1) or in sub-section (4) of section 139 to indicate that where returns are filed beyond the time specified in clauses (i) and (ii) of the proviso pursuant to a notice issued by the Income-tax Officer, clause (iii) of the proviso is not applicable. All that the proviso says is that it is open to the Income-tax Officer in his discretion to extend time for furnishing the returns as provided in clauses (i) and (ii). But clause (iii) of the proviso has to be read with sub-section (4) of section 139 of the Act. If clause (iii) of the proviso is read with sub-section (4) of section 139, then the position becomes c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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