BHARAT FURNISHING CO. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal, by the assessee, impugns imposition of penalty, under section 271(1)(a) of the Income Tax Act,1961 ( Act, for short), for late filing of return in relation to assessment year 1984 -85. By order dated 17th September, 2002, the following substantial question of law was framed: -

(2.) THE appellant -assessee, a partnership firm, was a government contractor during the relevant period. Return for the assessment year 1984 -85 was due and should have been filed on or before 31st July, 1984. It was belatedly filed after 23 months on 2nd July, 1986, declaring taxable income of Rs. 3,91,440/ -. Self assessment tax of Rs. . . .89,940/ - due was paid at the time of filing the return, after taking credit of tax deducted at source of Rs.42,095/ -. The computation sheet shows that there were three partners of the appellant firm and the taxable income of Rs. 3,01,500/ -was divided amongst the three partners in the ratio of 30% (Rs.90,450/ -), 35% (Rs.1,05,525/ -) and 35% ( Rs.1,05,525/ -).

(3.) THE appellant -assessee filed an appeal before the Income Tax Appellate Tribunal (Tribunal, for short), which has been dismissed by the impugned order dated 8th June, 2001. Before the Tribunal, the assessee had placed reliance on judgment of the Supreme Court in Hindustan Steel Limited Vs. State of Orissa, : (1972) 83 ITR 26 (SC). Tribunal rejected the contention that the return for the earlier assessment year 1983 -84 was revised and as a result of the revision, the income of the assessment year 1984 -85 underwent a change. It was held that this could not be established. Further, the appellant - assessee's submission that they were in a dilemma and that there were sufficient reasons to explain the delay in filing the return after a period of 23 months, cannot be accepted. The assessee had not filed Form No.6 seeking extension of time nor had they justified and satisfactorily explained the cause for the delay.