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Commissioner of Income-tax Vs. M. Manik Rao - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAndhra Pradesh High Court
Decided On
Case NumberCase Referred No. 81 of 1970
Judge
Reported in[1977]109ITR580(AP)
ActsIncome Tax Act, 1961 - Sections 139(1)
AppellantCommissioner of Income-tax
RespondentM. Manik Rao
Excerpt:
.....under third clause of proviso to section 139 (1) only when income tax officer (ito) extends time for furnishing of return on application by assessee - held, tribunal justified in disallowing levy of penalty on presumption of performance of official acts. - - he also levied penalty under section 271(1)(a) ofthe act on the ground that the assessee had failed without reasonable cause to furnish the returns of income which he was required to furnishunder section 139(1). under the third clause of the proviso to section 139(1)the income-tax officer is empowered, in his discretion, on an application bythe assessee to extend the date for furnishing a return of income up to any period, in which case interest at 6% shall be payable by the assessee fromthe first day of october or the..........empowered, in his discretion, on an application bythe assessee to extend the date for furnishing a return of income up to any period, in which case interest at 6% shall be payable by the assessee fromthe first day of october or the 1st day of january, as the case may be, ofthe assessment year to the date of the furnishing of the return. sinceinterest is chargeable under the third clause of the proviso only when the income-tax officer extends the time for the furnishing of the return on theapplication of the assessee, the appellate tribunal presumed that. theremust have been an application by the assessee and that the income-taxofficer must have extended the time for filing the return. the tribunalthought that it was justified in drawing such a presumption as the correctstate of facts was.....
Judgment:

Chinnappa Reddy, J.

1. The assessee submitted his returns of income beyond the period prescribed by Section 139(1) of the Income-fax Act, 1961. The Income-tax Officer accepted the returns and proceeded with the assess-merit. He charged interest under the third clause of the proviso to Section 139(1) of the Act. He also levied penalty under Section 271(1)(a) ofthe Act on the ground that the assessee had failed without reasonable cause to furnish the returns of income which he was required to furnishunder Section 139(1). Under the third clause of the proviso to Section 139(1)the Income-tax Officer is empowered, in his discretion, on an application bythe assessee to extend the date for furnishing a return of income up to any period, in which case interest at 6% shall be payable by the assessee fromthe first day of October or the 1st day of January, as the case may be, ofthe assessment year to the date of the furnishing of the return. Sinceinterest is chargeable under the third clause of the proviso only when the Income-tax Officer extends the time for the furnishing of the return on theapplication of the assessee, the Appellate Tribunal presumed that. theremust have been an application by the assessee and that the Income-taxOfficer must have extended the time for filing the return. The Tribunalthought that it was justified in drawing such a presumption as the correctstate of facts was not clear from the records of the case which were available to them. We cannot say that the Tribunal erred in drawing such aninference. Illustration (c) to Section 114 of the Evidence Act authorisesthe drawing of a presumption that official acts have been regularly performed. Since interest was not chargeable unless time had been extendedthe Tribunal was justified in holding that time must have been extended on the application of the assessee. Accepting that finding we agree withthe Tribunal that penalty was not leviable.

2. The questions referred to us are, therefore, answered in favour of theassessee and against the department. There will be no order as to costs.


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