B.P.Jeevan Reddy, C.J. - (1.) Under Section 256(2) of the Income-tax Act, 1961, the Tribunal has stated the following two questions : "1. Whether, on the facts and in the circumstances of the case, was the Tribunal justified in casting the burden on the Department to prove that the assessee had no reasonable cause for the delay in furnishing the return ?
(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in cancelling the penalty ? 2. The assessment year concerned was 1971-72. The assessee is a registered firm. The return for the said assessment year had to be filed on or before June 30, 1971. The assessee filed two applications dated June 28, 1971 and September 2, 1971, for extension of time for filing the return. Time was finally extended up to September 30, 1971, but no return was filed. Thereupon, the Income-tax Officer issued a notice under Section 139(2) of the Act on November 25, 1971, which was served on the assessee on November 30, 1971. About fourteen months later, the assessee filed the return on December 5, 1972. On the above facts, a notice under Section 271(1)(a) of the Act was issued. It appears from the order of the Tribunal that no one appeared on behalf of the assessee in response to the said notice. Accordingly, the Income-tax Officer imposed a penalty of Rs. 5,460.
(3.) The assessee filed an appeal and it was urged before the Appellate Assistant Commissioner that the return could not be filed in time because the munim had fallen ill. This plea was rejected by the Appellate Assistant Commissioner holding that no such plea was taken before the Income-tax Officer nor was any evidence produced in support of the said allegation either before the Income-tax Officer or before him (the Appellate Assistant Commissioner).;