COMMISSIONER OF INCOME TAX Vs. N SRINIVASAN

JUDGEMENT

(1.) PURSUANT to the directions of this court in T.C.P. No. 48 of 1982, dated August 30, 1980, the Appellate Tribunal has referred the following question of law under section 256(2) of the Income-tax Act, 1961, for our consideration.

(2.) THE assessment year involved is 1973-74, and the assessee-firm filed its return which was due on August 15, 1973, only on February 27, 1975. THEre was a delay in filing the return. THE Income-tax Officer levied penalty under section 271(1)(a) of the Act. THE Appellate Assistant Commissioner (Appeals) found that since the tax had been deducted at source in excess, there is no case for levy of penalty for the delay in furnishing the return and ordered the refund of the sum of Rs. 11,521. THE Appellate Assistant Commissioner considered the cause for the delay in filing the return and came to the conclusion that there was no deliberate delay and cancelled the penalty. THE Revenue preferred an appeal challenging the order of the Appellate Assistant Commissioner and the Appellate Tribunal held that since the assessed tax was a negative figure, the tax deducted at source being larger than the tax demanded resulting in refund of Rs. 8,349 the levy of penalty was not justified. THE Appellate Tribunal, on the basis of the directions of this court, stated a case and referred the question of law set out earlier.