This appeal is directed against order of AAC upholding penalty of Rs. 5,305 imposed by ITO under s. 271(1)(a) in asst. yr. 1978-79. return of income for asst. yr. 1978-79 was to be filed by assessee on or before 31st July, 1978 in order to be within time. It had however, been filed on 4th Sept., 1979 (wrongly mentioned as 4th Sept., 1978 in order passed by ITO). On being called upon explain delay assessee submitted before ITO that has applied for extension of time but since it was not able to furnish any evidence in respect of filing of Form No. 6 ITO rejected explanation and imposed penalty of Rs. 5,304. When matter came up in appeal before AAC, assessee submitted that it was partner in various firms carrying on business of exhibition of firms and that since he was not able to obtain requisite information regarding his shares of profit from those firms, return was delayed. dates on which returns was been filed by four firms had also been told to AAC and assessee was also able to furnish photostat copies of acknowledgement receipts evidencing dates on which four firms had filed returns of income. AAC noticed that returns of four firms had been filed on 30th June, 1978, 3rd Jan., 1979, 20th Feb., 1979 and 15th May, 1979 but at same time held that mistake by delayed submission of returns by firm was no satisfactory explanation in case of assessee who had filed his return of income on 4th Aug., 1978 i.e., date anterior in point of time to date on which firms had filed their returns for asst. yr. 1978-79. In beginning of order passed by AAC he had noticed that correct date on which return had actually been filed by assessee was 4th Sept., 1979 but subsequently be forgot correct date and instead mentioned in his order that return of assessee was filed on 4th Aug., 1978. According to AAC, when assessee had filed its return of income on 4th Aug., 1978, fact that firms had filed their returns subsequently was of no consequence and could not constitute to be reasonable cause for delay in filing of return by assessee itself. We have noticed mistake committed on part of AAC. In fact as mentioned in very beginning of order assessee had actually filed its return on 4th Sept., 1979. delay in filing of return was undoubtedly due to large extent, to fact that four firms in which assessee was partner had not been able to compile their accounts and file their returns of income. It was only on 15th May, 1979 that M/s Jagar Cinema in which assessee was partner had been able to file its return of income for asst. yr. 1978-79. Since till end of May, 1979, assessee was not able to obtain necessary information regarding his shares income from four firms, delay upto that point of time stands satisfactorily explained. There is however, no reasonable explanation for delay of 3 months, i.e., June, July and August, 1979 in matter of filing return. We would, therefore, hold that penalty was exigible upon appellant under s. 271(1)(a) for period of three months during which there was default without there being any reasonable cause. We would accordingly modify order passed by AAC and direct ITO to recompute penalty on above basis. appeal filed by assessee is allowed in part. *** RAKESH KHANNA v. INCOME TAX OFFICER