COMMISSIONER OF INCOME TAX Vs. SARDAR AMARJIT SINGH

JUDGEMENT

(1.) THIS is a reference made by the Tribunal under S. 256(1) of the INCOME TAX ACT, 1961. The reference relates to asst. yrs. 1960 -61 and 1961 -62.

(2.) THE assessments of the respondent, Sardar Amarjit Singh, for the above two assessment years were completed by the ITO on 30th November, 1963. It may be mentioned here that the return for the asst. year 1960 -61 had been filed on November 2, 1962, and that for the asst. year 1961 -62 on March 8, 1963. The assessments having been completed after April 1, 1962, the ITO took proceedings under S. 271(1)(a) for the delay in the filing of the returns. After considering the assessee's explanation, he imposed on the assessee penalties of Rs. 3,276 and Rs. 2,328, respectively, for the two years. This was levied by him at 2per cent of the tax payable for every month of default as provided in S. 271(1)(a). These penalties were confirmed by the AAC.

(3.) IT may be mentioned here that the second question was referred by the Tribunal suo motu. As already pointed out, the Tribunal had held that there had been a compliance with the provisions of s. 275(1) of the IT Act, 1961, and the CIT had not sought a reference of this question.