COMMISSIONER OF INCOME TAX Vs. RAM NIWAS AGRAWAL

JUDGEMENT

(1.) THE Tribunal, Allahabad has referred the following question of law under s. 256(1) of the IT 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 learned Tribunal was justified in deleting the penalty of Rs. 31,663 levied under s. 271B of the IT Act, 1961 for asst. yr. 1990 -91 - The reference relates to the asst. yr. 1990 -91.

(2.) BRIEFLY stated, the facts giving rise to the present reference are as follow : Rs. 31,663 and confirmed during first appeal, was deleted by the Tribunal on the following premise : "Most of the Tribunal Benches have been taking the view that if a report of audit timely obtained is filed by an assessee even late along with a belated return does not entail a penalty, inasmuch as at the relevant time there did not exist any provision whereunder an assessee could have filed audit report independent of his return of income and sensing this which as against the obtainment of such report enjoined upon the assessee to furnish a report of such audit by a particular date. In view of the aforesaid no penalty is impossible. The same is deleted."

(3.) WE have heard the learned counsel for the parties.