COMMISSIONER OF INCOME TAX Vs. HYDROFLEX EQUIPMENT LTD

JUDGEMENT

(1.) These appeals are filed under section 260-A of the income Tax Act, 1961 (the Act, for short) and were admitted on a substantial question of law, common in both, which reads as follows :-"whether on the facts and in the circumstances of the case, the finding of the itat that the assessee has a reasonable cause in not paying the tax is based on any material evidence on record -

(2.) Since the substantial question of law framed is common in both the appeals we propose to decide the same by this common judgment. That apart, the Income Tax Appellate Tribunal, Panaji Bench, (ITAT, for short) has also decided the same by a common order dated 31-10-2001.

(3.) The respondent No. 1 (assessee, for short) has chosen not to contest these appeals. Both these appeals arise from the orders passed by the assessing Officer (Joint Commissioner of Income Tax) dated 17-12-1998 under section 221 (1) of the Act. The Tax Appeal No. 39 of 2002 pertains to penalty levied by the said Assessing Officer in the sum of Rs, 2,50,000/- for the assessment year 1996-97 while Tax Appeal No. 40 of 2002 pertains to penalty levied for the assessment year 1997-98.