Short Note : Though the Income-tax Officer levied a penalty of Rs. 8,557 for the assessment year 1959-60 and Rs. 2,087 for the assessment year 1960-61 for the late submission of the returns under section 271(1)(a) of the Income-tax Act, 1961, and the levy of penalty was upheld, in appeal, by the Appellate Assistant Commissioner, the Income-tax Appellate Tribunal held that the assessee being a registered firm and its income as per books of account below the taxable limit, which was Rs. 40,000 during the assessment years 1959-60 and 1960-61, there was no obligation to submit a return under section 22(1), and therefore, the delay in submission of its returns was due to reasonable cause. Incidentally, we may mention that the Department has accepted the finding with respect to the assessment year 1960-61 but has only applied for reference for the assessment year 1959-60. Held : The question whether or not there was a "reasonable cause" within the meaning of section 271(1)(a) of the Income-tax Act, 1961, for not filing the return of its income as required under section 22(1) of the Income-tax Act, 1922, was one for the Appellate Tribunal to determine, in the facts and circumstances of the case. The conclusion that it has reached, on a consideration of the material on record, is a finding of fact. It found that there was a reasonable cause within the meaning of section 271(1)(a) of the Income-tax Act, 1961, for not filing the return as required under law because the income of the assessee exceeded the taxable limit on account of certain unexpected additions made on estimate basis which could not be reasonably anticipated by the assessee. 2. The reference is answered accordingly. We hold that the Income-tax Appellate Tribunal was justified in setting aside the penalty amounting to Rs. 8,557 levied under section 271(1)(a) of the Income-tax Act, 1961, in respect of the assessment year 1959-60.