(1.) BY this reference under s. 256(1) of the IT Act, 1961(`the Act'), the Tribunal has referred the following question to this Court for its opinion:--
(2.) THE assessee did not file his income-tax return in time. THE assessee filed the necessary return on 17th March, 1976. THE returns ought to have been filed on 15th Aug., 1975. By the assessment order dt. 29th March, 1976, the assessment was completed. THE ITO determined the total loss for the asst. yr. 1975-76 at Rs. 17,708. THE said assessment was later on rectified under s. 155 of the Act, by an order dt. 30th March, 1978, assessing the total income of the assessee at Rs. 1,51,580. At one stage, a show-cause notice was issued to the assessee calling upon him as to why penalty should not be imposed on him for late filing of the return. It was held that no penalty was leviable on the basis of the original assessment as the assessee had suffered loss of Rs. 17,708, and the assessee had no taxable income. After the assessment order was rectified as stated above no fresh show-cause notice was issued to the assessee before imposing penalty in question. Penalty in question was imposed straightway and without issuing any show-cause notice. Without issuing any fresh show-cause notice and without giving any opportunity to the assessee to show cause in the matter, the straightway levied penalty in sum of Rs. 14,496.