B P BAJORIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The following question has been referred to this court under Section 256(1) of the I.T. Act, 1961 :

(2.) Whether, in a particular case, there was sufficient cause for the failure to file a return and as such penalty should be directed or not is primarily a question fact. On this aspect, the Tribunal seems to have considered all the aspects of the question. We can do no better than to set out the relevant portion of the order of the Tribunal.. The Tribunal has observed, inter alia, as follows :

(3.) Some argument was sought to be advanced that the Tribunal had not decided on the question of mens rea. On this aspect, reliance was placed on certain observations in the case of V.L. Dutt v. CIT . The Tribunal seems to have proceeded on the basis that even if the mental element was necessary whether, in a particular case, sufficient cause was made out or not is a question of fact and the Tribunal has taken into consideration all the relevant facts, as have been mentioned hereinbefore, and was right in its conclusion. In these circumstances, in our opinion, it cannot be said that the Tribunal committed any error of law or erred in arriving at its conclusion which it did.