- (1.) FAILURE on the part a registered firm in filing the return within the stipulated period and the imposition of penalty on that account under Section 271 (1) (a) (i) (b) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), where the tax deducted at source or paid in advance is equal to or exceeds the tax payable by such firm, is the point in issue here
(2.) THE assessee, Harish Chand and Co. , was required to file its return of income on or before July 31, 1978. It did not, however, file any such return till April 7, 1982. Penalty proceedings were consequently initiated against it under Section 27 of the Act.
(3.) IN dealing with this matter, it was found that the tax payable by the assessee was Rs. 2,550 whereas the tax deducted at source was Rs. 4,050. This being so, no tax was assessed as payable when the assessment was framed. The Income-tax Officer, however, proceeded to assess and impose a penalty of Rs. 7,660 treating the assessee as an unregistered firm for the purpose of calculation of this penalty. This penalty was, however, deleted in appeal by the Appellate Assistant Commissioner, whose order was later upheld by the Tribunal.;