| Case ID |
2cc9b2cb-746a-4b2f-bb58-7401325264d6 |
| Body |
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| Case Number |
TAXATION CASE No. 9 OF 1975 |
| Decision Date |
Apr 02, 1983 |
| Hearing Date |
|
| Decision |
The Tribunal was justified in restricting the period of default under section 271(1)(a) to one month only for the assessment year 1966-67. It was established that the return filed on 8-11-1966 had been accepted in the past, which led the assessee to believe that it was valid. The Department's argument that the return was non-est was rejected, and the penalty was limited to one month due to the lack of evidence regarding the notice's service date. The case reinforces the importance of reasonable belief based on previous conduct by tax authorities. |
| Summary |
This case revolves around the penalty for late filing of an income tax return by Kalyani Selected Kargallia Colliery for the assessment year 1966-67. The return was due by September 30, 1966, but was filed on November 8, 1966, signed by an accountant, which raised concerns regarding its validity. The Income Tax Officer (ITO) initially imposed a penalty for a 24-month delay, but the Appellate Assistant Commissioner (AAC) deleted this penalty. Upon appeal, the Tribunal found that while the return filed was indeed valid, the delay was acknowledged as one month based on established precedents and the Department's own past acceptance of similar returns. This case emphasizes the significance of established practices in tax filing and the necessity for clear communication regarding compliance requirements. The decision ultimately favored the assessee, affirming their reasonable belief in the validity of their filing process. |
| Court |
Patna High Court
|
| Entities Involved |
Not available
|
| Judges |
S.K. Jha,
Ashwini Kumar Sinha
|
| Lawyers |
B.P. Rajgarhia,
S.K. Sharan,
K.N. Jain,
Rameshwar Prasad,
B.P. Gupta
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Kalyani Selected Kargallia Colliery
|
| Citations |
1984 SLD 618,
(1984) 148 ITR 468
|
| Other Citations |
Commr. of Agrl. I.T. v. Sri Keshab Chandra Mandal [1950] 18 ITR 569 (SC),
Addl. CIT v. Bihar Textiles [1975] 100 ITR 253 (Pat),
Tarzan Hosiery P. Ltd. v. ITO [1968] 69 ITR 842 (All),
Venkateswara Power Rolling Mills v. CIT [1974] 97 ITR 168 (Mys)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(a),
139(1),
139(2)
|