INCOME TAX OFFICER Vs. MADHULIKA AGARWAL

JUDGEMENT

(1.) cAggrieved by the order of the Commissioner (Appeals) cancelling the penalty of Rs. 83,500 imposed by the ITO under section 271(1) (a) of the Income-tax Act, 1961 (the Act) the department has come up in appeal.

(2.) These relevant facts need be noticed :

(3.) According to the fresh assessment, it appears, that the tax assessed was Rs. 1,67,009. The ITO initiated penalty proceedings under section 271(1) (a) and called upon the assessee to explain why penalty should not be imposed for delay of 57 months in filing the return of income. This delay was computed from 31-7-1975 to 30-5-1980. Explanation of the assessee was that of because of long delay in the receipt of account from the partnership firm Metal Converter the return could not be filed in time. The ITO was not satisfied with the explanation. He imposed the penalty of Rs. 83,500.