CIT Vs. RAJ RICE MILLS

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Delhi has referred the following question of law under section 256(l) of the Income Tax Act, 1961, hereinafter refer -red to as 'the Act' for opinion to this Court. 'Whether, on the facts and in the circumstances of the case, the Tribunal was correct in cancelling the penalty levied under section 271B of the Income Tax Act, 1961?'

(2.) THE present Reference relates to the assessment year 1989 -90 in proceeding arising out of imposition of penalty under section 271B of the Act.

(3.) WE have heard Sri AN Mahajan, learned standing counsel for the revenue and Sri Vishwajeet, learned counsel for the respondent -assessee.