COMMISSIONER OF INCOME TAX Vs. JANTA SERVICE STATION

JUDGEMENT

(1.) BY an order dt. 30th March, 1998, passed under S. 256(1) of the IT Act, 1961 (for short, "the Act"), the Income tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), referred the following question of law to this Court :

(2.) THE facts which have a bearing on the decision of the aforementioned question are that after finalisation of the assessment for the asst. year 1990 91 under S. 143(3) of the Act, the AO initiated action against the assessee respondent under S. 271B of the Act on the ground that it had not furnished the audit report as required by law and after hearing its representative, he passed the order imposing penalty under S. 271B of the Act. The appeal filed by the assessee was dismissed by the CIT(A), Shimla, and the penalty imposed by the AO was upheld. That order was set aside by the Tribunal.