COMMISSIONER OF INCOME TAX Vs. GORDHANBHAI JETHABHAI

JUDGEMENT

(1.) THE assessee in this reference is a registered partnership firm. It was required to furnish its return of income for the asst. year 1968 69, on June 30, 1968. The return was, however, filed on November 7, 1968, declaring a total income of Rs. 5,83,962. In view of the delay in submission of the return, the ITO initiated proceedings for levy of penalty for late submission of return under s. 271(1)(a) of the IT Act, 1961 (hereinafter referred to as the " Act"). In response to the showcause notice, the assessee appeared before the ITO and resisted the Proposed action on various grounds. The contention which the assessee raised before the ITO, as set out in the order of the Tribunal, were as follows :

(2.) THE explanation for the delay given by the assessee was not accepted by the ITO who held that the assessee had committed default in submitting its return of income late without reasonable cause. In the result, he levied penalty of Rs. 25,494. In the appeal preferred by the assessee, the AAC, while agreeing with the view taken by the ITO, held that the ITO had wrongly calculated the penalty imposed upon the assessee under S. 27l(1)(a) of the Act. In the result, he enhanced the penalty to Rs.27,830, after hearing the assessee on the question of enhancement of penalty.

(3.) THE following facts are not in dispute. The assessee who under S. 139(1) of the Act was required to file a return of its income for the asst. year 1968 69, on June 30, 1968, filed it on November 7, 1968. Applications in Form No. 6, dated June 26, 1968, June 28, 1968, October 18, 1968, and November 1, 1968, were made on behalf of the assessee before the ITO seeking extension of time for filing the return. The ITO did not render his decision on these applications. In other Words, be neither rejected nor granted these applications. Since the ITO did not render any decision, no decision was communicated to the assessee.