COMMISSIONER OF INCOME TAX Vs. SCHELL INTERNATIONAL

JUDGEMENT

(1.) The appeal filed by the Revenue u/s. 260A of the Income-tax Act, 1961, is directed against the order passed by the Income-tax Appellate Tribunal, Mumbai Bench, Mumbai, dated January 10, 2000, in Income-tax Appeal No. 790/Bombay of 1995.

(2.) To state in brief, the respondent had taken up the production of the film called "Siyasat" during the financial years 1988-89 to 1992-93. As per the provisions of Sec. 285B, he was required to file the statement in Form No. 52A for each of the assessment year, within 30 days from the expiry of the financial year. Failure to file such statement leads to imposition of penalty u/s. 272A(2) of the Income-tax Act, 1961. As the respondent failed to submit the statements, the show-cause notice dated January 28, 1993, was issued and was served on him on February 3, 1993. He submitted the statements on March 2, 1993. As no reasons were specified for not filing the statement, another notice dated March 9, 1993 was issued. In response to the said notice, he explained that it was his first and last venture which had flopped and due to the ignorance of legal formalities, he could not "submit the statements. After hearing, the Assessment Officer imposed consolidated penalty of Rs. 1,40,000. That order was maintained in appeal by the Commissioner of Income-tax (Appeals). In appeal by the respondent, the Tribunal set aside the order of the Assessment Officer holding that due to the ignorance of the provisions of law, he had failed to submit the statements and as soon as he came to know about the requirement, he had submitted the same. Therefore, non-submission of the statements was not intentional, deliberate or due to negligence.

(3.) The Revenue has challenged the said order of the Tribunal and raised the following substantial question of law.