BHAGIRATH PRASAD BILGAIYA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question has been referred to us for our opinion :

(2.) THE assessee, Bhagirath Prasad, for the assessment year 1960-61 filed his return of income on July 23, 1964, which was, in fact, due to be filed on or before July 30, 1960. THE return was obviously late by more than 25 months. THE ITO issued a notice to the assessee to show cause why penalty should not be imposed for the late filing of return. THE assessee contened that since his income during the year was only Rs. 950, he was not bound to file a return. THE ITO assessed the total income at Rs. 41,431 and, thereafter, imposed a penalty of Rs. 6,313. THE assessee went up in appeal before the AAC against the order imposing penalty. THE appeal had been dismissed with some modification. THE assessee then preferred a second appeal before the Tribunal. THE Tribunal, maintaining the order, observed that the assessee's return was late by more than 25 months and as the maximum penalty imposable under Section 271(1)(a) was 50 per cent. of the tax levied or to be levied, the penalty imposed was clearly justified.

(3.) WE answer the question in the negative in favour of the assessee that in the facts and circumstances of the case, the Tribunal was not justified in imposing a penalty under Section 271(1)(a) of the I.T. Act, 1961, on the assessee for filing the return late. There shall be no order as to costs.