COMMISSIONER OF INCOME TAX Vs. SUMAN AGARWAL

JUDGEMENT

(1.) THIS is a reference under S. 256(1) of the IT Act, 1961, at the instance of the CIT, Agra. The Tribunal, Delhi Bench 'E', has referred the following question of law for the opinion of this Court:

(2.) THE dispute pertains to the asst. yr. 1974-75 and arises out of proceedings under S. 271(1)(a) of the IT Act, 1961 (for short "the Act"), for imposition of penalty for delay in filing the return of the total income. The return in the case of the assessee for the assessment year in question was due on 31st July, 1974, while it was filed on 24th Feb., 1975, after a delay of six completed months. Under the circumstances, the ITO initiated penalty proceedings for the delay in filing of the return and ultimately levied a penalty of Rs. 20,268. The penalty order was upheld in appeal by the CIT(A). On second appeal by the assessee the Tribunal let off the penalty. Hence, this reference at the instance of the Revenue.

(3.) IN deleting the penalty the Tribunal accepted the explanation of the assessee on account of which she was prevented from submitting the return within the prescribed time. In doing so, the Tribunal recorded its finding as under: