MAYA RANI PUNJ vs COMMISSIONER OF INCOME TAX, DELHI.

The Supreme Court upheld the imposition of penalty under Section 271(1)(a) of the Income Tax Act, 1961 for the failure to file a return on time, affirming that the provisions of the 1961 Act applied despite the return being for an assessment year under the 1922 Act. The Court clarified that the discretion to reduce the penalty under the new Act does not allow for a reduction below the prescribed rate if the penalty is levied. The appeal by the assessee was dismissed, confirming the penalty of Rs. 4,060 imposed by the Income Tax Officer was justified.