COMMISSIONER OF INCOME-TAX Vs. UNIVERSITY PRINTERS

JUDGEMENT

(1.) The Income-tax Appellate Tribunal has referred the following question under Section 256(2) of the Income-tax Act, 1961.

(2.) The relevant facts are the following :

(3.) In our opinion, the said approach is consistent with the decision of the Supreme Court in CIT v. Anwar Ali [1970] 76 ITR 696. Learned standing counsel for the Revenue argued that the ratio of the decision in Anwar Ali [ 1970] 76 ITR 696, cannot be understood in absolute terms and if it is so done, it would amount to asking the Department to prove the impossible. We do not know. The decision of the Supreme Court is binding upon us. Indeed, the facts in the case of Anwar Ali [1970] 76 ITR 696 (SC) were more prejudicial to the assessee and yet it was held that, in the absence of any material other than the fact that the explanation offered by the assessee was rejected, penalty under Section 28(1)(c) of the 1922 Act (corresponding to Section 271(1)(c) of the present Act) cannot be imposed.