COMMISSIONER OF INCOME TAX Vs. S P VIZ CONSTRUCTION COMPANY

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The questions, referred to us, for our opinion, are as follows :

(2.) IN this reference, we are concerned with the assessment year 1971-72. The due date for filing the return was October 30, 1971. Application for extension of time to file the return was filed on October 1, 1971. Although the application bears the date September 30, 1971, the finding is that it had been filed on October 1, 1971. A return for the relevant assessment year was filed on May 31, 1972, showing an income of Rs. 80,000 by estimate. It appears that it was realised by the assessee himself that the return filed by him was defective for various reasons. A revised return was, therefore, filed on March 17, 1973, showing the total income of Rs. 1,03,470. The returns having been filed beyond the due date, a penalty proceeding in terms of Section 271(1)(a) was initiated. The INcome-tax Officer held that the return filed on May 31, 1972, was no return as it lacked the necessary particulars. He, therefore, levied penalty for 17 months' delay in filing the return. A sum of Rs. 28,626, being 2% of the tax of Rs. 84,194, was imposed. The firm was treated as an unregistered firm. On appeal, the Appellate Assistant Commissioner considered the plea of the assessee for not filing the return within time. IN that behalf, he examined the reasonableness for the delay in filing the return. The Appellate Assistant Commissioner applied himself to the pleas advanced by the assessee. Upon full consideration, he held that no reasonable cause had been shown for late filing of the return. The finding is in the following words :

(3.) THE first question which arises for consideration is whether the return filed on May 31, 1972, was a valid return although it was not accompanied by the statements of accounts supporting the income shown in the return ? THE return filed on May 31, 1972, has not been produced before us. We have, therefore, to decide this question on the basis of the facts recorded by the Income-tax Officer and the Appellate Assistant Commissioner. THE Appellate Assistant Commissioner has noted that no statement of accounts had been filed along with the return. He has observed as follows :