COMMISSIONER OF INCOME TAX Vs. DIPAK CONSTRUCTION CO

JUDGEMENT

(1.) AT the instance of the applicant-Revenue, the following question of law is referred for the opinion of this Court :

(2.) THE assessment year involved is asst. yr. 1983-84 for which the accounting year ended on 31st Dec., 1982. The respondent-assessee is a partnership firm and it has filed its return on 30th Oct., 1984, declaring total income of Rs. 1,27,828. Thereafter the assessee has filed revised return of income declaring total income of Rs. 2,27,824. The ITO has assessed the total income of the assessee at Rs. 2,35,760. The tax payable on the assessed income was determined at Rs. 46,840. The assessee has paid the tax by way of TDS of Rs. 60,492 and hence the assessment has resulted into refund of Rs. 13,652.

(3.) BEING aggrieved by the said order, the assessee preferred an appeal before the CIT(A). The CIT (A) has held that the return was not under the Amnesty Scheme and it was further held by him that mere fact that the TDS exceeded the assessed tax would not be a ground for not levy of penalty. He has further observed that since there was no reasonable cause for delay, the assessee was to be treated as unregistered firm and the tax payable by unregistered firm was to be taken into account. He, therefore, confirmed the order passed by the ITO levying penalty under S. 271(1) (a) of the Act.