COMMISSIONER OF INCOME TAX Vs. KRISHANDAS AGARWAL

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal referring for our answer the following question of law:

(2.) THE relevant assessment year is 1963-64. THE returns were due on 30th June, 1963. THE returns were filed on 30th December, 1963, by the partners. THE ITO found that the forms were not available till 10th August, 1963, but thereafter there was no justification for not filing the returns. Penalty was, therefore, imposed on the partners under Section 271(1)(a) of the I.T. Act, 1961. In appeal, the AAC came to the conclusion that the returns ought to have been filed within 35 days from the receipt of the forms, i.e., on 15th September, 1963. THE penalty was, therefore, reduced. THE Tribunal, however, cancelled the penalty for the following reasons :

(3.) OUR answer to the question referred is as follows :