Commissioner Of Income Tax vs Gujarat Travancore Agency

Whether the Tribunal was justified in entertaining an additional ground of appeal regarding mens rea for penalty under section 271(1)(a) after the assessee had conceded delay before the AAC --- Held Yes. Whether the Tribunal was justified in cancelling penalties levied under section 271(1)(a) for failure to file returns without reasonable cause --- Held Yes, as the burden of proof lies on the Department to establish absence of reasonable cause and mens rea is not required for penalty under the 1961 Act.