ZULEKHA BEGUM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Tribunal has submitted the statement of case and has referred the following questions of law for our opinion : " 1. Whether, on the facts and in the circumstances of the case, the ITO had jurisdiction to levy penalty under Section 271(1)(a), I.T. Act, 1961, for the delay in the submission of the first return filed under Section 139(4), I.T. Act, 1961, when the assessment was made with reference to the second return submitted under the same provision ?

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in its view that the assessment, though made on a protective basis, lost its character as such and became a regular assessment and in upholding the levy of penalty in that view ? "

(3.) The facts of the case are simple and clear. The assessment year in question is 1963-64. For this year the return was due by June 30, 1963, under Section 139(1), I.T. Act, 1961. The return was filed by the assessee on September 14, 1963, showing a total income of Rs. 10,294. On September 7, 1967, the assessee filed a revised return showing a total income of Rs. 18,429. During the course of the assessment proceedings, the ITO issued notice to the petitioner requiring to show cause why penalty under Section 271(1)(a) should not be imposed for the delay in filing the return. After hearing the assesSee, the ITO imposed a penalty of Rs. 20,476. The assessee went up in appeal and then in further appeal to the Tribunal but failed.