COMMISSIONER OF INCOME TAX Vs. KESHIPRA AND COMPANY

JUDGEMENT

(1.) PENALTY was imposed on the assessee of Rs. 32,880 for the assessment year 1985-86 and Rs. 1,00,000 for the assessment year 1986-87 for not filing the audit report. The assessee took appeal against this before the Commissioner of Income-tax (Appeals) and showed that the audit report was filed and that the requirement of filing the audit report was brought into force by the Finance Act, 1988, from April 1, 1989, and thus, was not attracted to the case. The Commissioner of Income-tax (Appeals) dismissed the appeal and the assessee carried the matter to the Tribunal which found on the facts that the assessee had submitted the audit report vide receipt No. (333898, dated March 21, 1990, thus, satisfying the requirement. It accordingly held levy of penalty illegal and also observed that the imposition of such penalty was otherwise barred by limitation under Section 275.

(2.) THE Revenue seized the limitation issue and sought reference on this which was rejected by the Tribunal noticing that imposition of penalty was otherwise not justifiable on the facts because the assessee had submitted the requisite audit report. But the Revenue filed this application for calling the reference from the Tribunal on the following questions, stated to be questions of law, for the opinion of this court :

(3.) THIS application is frivolous and is accordingly rejected. The Registrar is directed to forward a copy of this order to the Chief Commissioner of Income-tax, Bhopal, for necessary action.