CIT Vs. RATAN LAL AGRAWAL

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(1) of the Income Tax Act, 1961, hereinafter referred 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 law in upholding the decision of first appellate authority in restricting the penalty under section 271(1)(a) to 50 per cent of the assessed tax instead of 2 per cent of the tax for every month of default committed, irrespective of the fact that the decision of the Hon'ble Supreme Court in the case of Maya Rani Punj is squarely applicable in the assessee's case?'

(2.) THE reference relates to the assessment year 1972 -73 in a proceeding arising out of the penalty imposed under section 271(1)(a) of the Act.

(3.) WE have heard Sri A.N. Mahajan learned standing counsel for the revenue and Sri S.D. Singh, learned counsel appearing on behalf of the respondent -assessee.