Similarly for the assessment year 1966 67 numberreturn was filed upto 30 June, 1966.
In the circum stances, the Income tax Officer initiated penalty proceed ings against the assessee under s. 271 1 a of the Act for the two assessment years.
Indeed, many of them were companysidered by the High Court and are referred to in the judgment under appeal.
At the instance of the Revenue the Appellate Tribunal referred the question set forth earlier to the High Court of Kerala.
No applica tion for extension of time was made either.
When numberice under s. 139 2 was served on the assessee on 21 June, 1966 it filed a return on 23 September, 1967.
85 and 86 of 1972.
1002 From the Judgment and Order dated 10.9.1974 of the Kerala High Court in Income Tax Reference Nos.
It was only after numberice under s. 139 2 of the Act was served on the assessee on 22 September, 1967 that it filed a return on the next day.
A sum of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
Soli J. Sorabjee, Udayu Lalit, D. Vidyanandan and M. Raghuraman for the Appellant.
14,784 was levied as penalty for the assessment year 1965 66 and a sum of Rs.
The assessee did number file its income tax return under the Income tax Act, 1961 for the assessment year 1965 66 within the statutory period, that is to say by 30 June, 1965, and instead applied for time to file the return.
The assessee is a registered firm trading in hill pro duce.
V. Gauri Shankar and Ms. A. Subhashini for the Respondent.
63031 of 1975.
The Judgment of the Court was delivered by PATHAK, CJ.
Yet numberreturn was filed.
These appeals, by certificate granted by the High Court of Kerala, are directed against the judgment of that High Court answering the following question of law referred to it in an Income tax Reference in favour of the Revenue and against the assessee Whether, on the facts and in the circum stances of the case, the Tribunal is justified in law in cancelling the penalties levied under s. 271 1 a of the Income tax Act, 1961, for the assessment years 1965 66, and 1966 67?
Time was granted up to 31.August, 1966.
11,447 was imposed as penalty for the assessment year 1966 The explanation of the assessee that he was under the bona fide belief that he had numberassessable income and had, therefore, number filed the returns earlier was number accepted by the Income tax Officer.
