( 1 ) AN interesting question regarding imposition of penalty under section 271 (l) (a) of the Income Tax Act, 1961, (hereinafter referred to as the Act ) is raised in this case.

( 2 ) THE assessee is a registered firm. It had to submit its return of income for the assessment year 1962-63 on or before 30th June, 1962. The assessee made an application to the Income Tax Officer on 28th September, 1962 for extension of time for filing the return of income on the ground that the audit of books of accounts of the assessee was not complete. The Income Tax Officer granted time uptil 29th October, 1962. A notice dated 23rd February, 1963, under section 139 (2) of the Act was served on the assessee on 14th March, 1963, requiring it to furnish the return of its income within thirty days from the date of service of the notice. The assessee submitted its return showing its income at Rs. 1,95,132-00. On this amount of income shown and keeping in view the status of the registered firm the tax payable by it was Rs. 16,665-00. After giving credit of advance tax paid amounting to Rs. 7,564-00, the tax payable by the assessee was detemined at Rs. 9,101-84. The Income Tax Officer also