Friday, August 22, 2014

[aaykarbhavan] Mens rea is not an requirement to impose penalty under Section 271(1)(a) of the Act




 
  1. DELHI HIGH COURT - Income Tax
    Penalty u/s 271(1)(a) – reasonable cause for late filing of return – Held that:- Assessee in their reply to the notice for penalty had referred to the return for the AY 1983-84 and the fact that the original return was filed taking into account payment received from DDA - this cannot be a ground for not filing the return for the AY 1984-85, specially, when the return for the AY 1983-84 was originally filed on 29th October, 1984 and the revised return was filed on 1st November, 1985 - the return for the assessment year 1984-85 was filed on 2nd July, 1986. The appellant-assessee had the opportunity to file Form No.6, which was applicable and could have given reasons for delay and belated filing of the return - The return could have been initially filed and then revised - For claiming loss, it was necessary for an assessee to file original return within the stipulated time - the assessee by not filing the return did not want benefit of carry forward of loss.

    Relying upon Gujarat Travancore Agency Vs. C.I.T [1989 (5) TMI 1 - SUPREME Court] - question of mens rea does not arise or require consideration when we examine the question of penalty u/s 271 (1)(a) of the Act - Penalty is a civil liability and is imposed upon infraction of law when conditions stipulated in the provision are satisfied - Mens rea is not an requirement to impose penalty under Section 271(1)(a) of the Act - As far as the factum that the return was delayed, the same is accepted and is not in dispute - Justification and cause for the delay is the issue in dispute - Facts of the present case and excuse given by the appellant has been noticed and rejected – Decided against Assessee.

Regards
Prarthana Jalan


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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>


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