Dipak Kumar Sen, J. - (1.) Kanhayalal Mukundlal, the assessee, was assessable to income-tax for the assessment year 1962-63, the accounting year ending some time in April, 1962. The assessee was required to file its return by October 12, 1962, but filed the same only on January 14, 1966.
(2.) For the delay in submission of its return, the Income-tax Officer initiated penalty proceedings against the assessee. In reply to a show-cause notice issued by the Income-tax Officer, it was contended by the assessee that the return had been filed late because the assessee had been contemplating to file a voluntary disclosure. In fact, the assessee subsequently filed a disclosure petition under Section 68 of the Finance (No. 2) Act, 1965.
(3.) The Income-tax Officer did not accept the explanation of the assessee. He held that there was no connection between not filing the return in time by the assessee and the voluntary disclosure scheme and levied a penalty of Rs. 15,234 under Section 271(1)(a) of the Income-tax Act, 1961 (" the Act").;