COMMISSIONER OF INCOME TAX Vs. ASIATIC TRADE COMBINE

JUDGEMENT

(1.) REVENUE moved this court under Section 256(2) of the Income-tax Act, 1961, for a direction to the Income-tax Appellate Tribunal, Cuttack Bench, to state a case and refer the following questions for opinion of the court:

(2.) BEFORE the Appellate Assistant Commissioner, in appeal, the assessee took the stand that the accounts were sent for audit and the audit was completed in 1967. Therefore, return could not be filed within the time allowed by law. The first appellate authority rejected the explanation saying that audit was not necessary under the law before return was filed. The assessee's second appeal before the Tribunal, however, succeeded. According to the Tribunal, the assessee was evidently waiting for the completion of the audit and since audit was completed in 1967, that is, after the due date, the assessee could not submit the return in time.