CHHOTEY LAL BHARANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner herein, Shri Chhotey Lal Bharany, has challenged the legality of the order passed by the CIT, Delhi, on June 20, 1970, whereby the application moved on behalf of the petitioner for waiving the penalty under S. 271(4A) of the IT Act, 1961, was rejected.

(2.) THE impugned order deals with two applications filed by the petitioner seeking waiving of the penalty imposable for furnishing late returns for the asst. yrs. 1963 -64 and 1964 -65.

(3.) IN the present petition, the challenge is to the order regarding the return filed on April 8, 1967, for the asst. year 1964 -65. It is admitted by the petitioner that the return was filed late and as such penalty was leviable under S. 271(1)(a) of the Act for the said assessment year. However, the case of the petitioner is that he had filed the return prior to the issue of notice to him under Sub -S. (2) of of S. 139 of the Act. The return filed was not only voluntary but was made in good faith inasmuch as he had made fall disclosure of his income. Thus, the CIT failed to exercise discretion vested in him in not reducing or waiving the penalty, it is urged.