COMMISSIONER OF INCOME TAX Vs. CALCUTTA MOTORS

JUDGEMENT

(1.) THIS is reference under S. 256 (2) of the IT Act, 1961 (the Act) at the instance of Revenue for calling the statement of case from the Tribunal for answer by this Court on the following two questions of law,

(2.) THE assessee is a partner ship firm engaged in purchase and sale of motor parts. For the asst. yr. 1981-82 return of income was filed on 28th Dec., 1982 as against due date 30th June, 1981 Since the return was late, the AO initiated penalty proceedings under S. 271 (1) (a) of the Act, and a show cause notice was issued and served on the assessee a further opportunity was given on 30th Dec., 1985 The assessee filed a written reply stating that extension of time was sought in Form No. dt. 26th June, 1981 vide acknowledgment dt. 31st Aug., 1981 and therefore, no penalty could be levied. No evidence was however, produced before the AO the AO therefore treated the assessee in default and levied penalty of Rs. 15,310 under S. 271 (1) (a) for the default of 17 months.

(3.) THE Tribunal was approached under S. 256 (1) for stating the case before this Court on the aforementioned questions of law. The application of the Department was rejected Hence, the Department has approached this Court under S. 256 (2) for calling the statement of the case on the aforesaid two questions of law from the Tribunal.