COMMISSIONER OF INCOME TAX Vs. PRATAPGARH AUTO STORES

JUDGEMENT

(1.) THE Tribunal, Allahabad, has referred the following two questions of law under s. 256(2) of the IT Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court : "1. Whether delay on the part of the auditor in completing the audit of books of account constitute a reasonable cause ?

(2.) WHETHER the books of account are only to be handed over to the auditor for audit purpose before the specified date or the report of auditor along with his certificate in prescribed form are to be obtained and submitted along with return of income before the specified date - 2. The present reference relates to the asst. yr. 1985 -86.

(3.) BRIEFLY stated the facts giving rise to the present reference are as follows : The AO imposed a penalty of Rs. 63,368 on the respondent -assessee under s. 271B of the Act on the respondent - the penalty was deleted by the CIT(A) but on a Department's appeal, the Tribunal restored the issue to the file of the CIT(A) who eventually confirmed the penalty. However, in the second round the Tribunal deleted the penalty.