COMMISSIONER OF INCOME TAX Vs. ADHYAPAK PRAKESHAN MANDIR

JUDGEMENT

(1.) The Income tax Appellate Tribunal has stated the following question for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) The assessee is a partnership firm. The assessment year concerned herein is 1973-74. The assessee did not file its return within the time prescribed ; it filed it with a delay of thirteen months. On January 2, 1976, the Income-tax Officer made an assessment order determining its income and tax payable and also continuing the registration since the relevant papers were found to be in order. The assessment order, however, says that penalty proceedings under Section 271(1)(a) of the Act have been initiated separately. A notice was served upon the respondent to show cause why penalty should not be levied upon it under Section 271(1)(a) of the Act. The assessee failed to submit any explanation. Accordingly, the Income-tax Officer levied penalty. The relevant portion reads thus ;

(3.) The assessee appealed to the Appellate Assistant Commissioner, Certain explanation was put forward by the assessee for the delay but it was not accepted. However, the penalty was deleted by the Appellate Assistant Commissioner on the following reasoning :