COMMISSIONER OF INCOME TAX Vs. SHYAM AUTO SERVICE

JUDGEMENT

(1.) THE Tribunal, Allahabad, has referred the following two questions of law under s. 256(1) of the IT Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court :

(2.) BRIEFLY stated the facts giving rise to the present reference are as follows : The assessee respondent filed its return showing income of Rs. 1,13,630 which was accepted under s. 143(1)(a) of the Act. The sales during the previous year relevant to the assessment year in question was Rs. 3,63,83,738.82. The proceedings under s. 271B of the Act as the audit report was filed along with the return beyond the time. The assessee which was obtained before the prescribed day and the return was late by one and half months. The AO imposed a penalty of Rs. 1 lakh under s. 271B of the Act. The said order was confirmed in appeal by the CIT(A). The Tribunal in further appeal has set aside the penalty order on the ground that the account books had been audited in time and the the delay of one month has taken place because of the pressure of the work with the counsel.

(3.) HEARD Shri R.K. Upadhyaya, the learned standing counsel for the Department.