COMMISSIONER OF INCOME TAX Vs. GIAN TALKIES

JUDGEMENT

(1.) ON the application of the CIT, Amritsar, Tribunal, Amritsar, referred the following two questions under s. 256 of the IT Act (hereinafter to be referred to as the Act for opinion this Court:-

(2.) BRIEFLY , the facts of the case are that Gian Talkies, Abohar, is a partnership firm. It has to furnish IT return relating to asst. yr. 1967-68 by 15th Nov., 1967, but it was actually furnished on 28th Jan., 1969. Thus there was a delay of 14 months in filing the return. The ITO initiated penalty proceedings vide notice dt. 20th Jan., 1969. He imposed a penalty of Rs. 5867/- vide order dt 24th Sept., 1969 holding that the delay appeared to be wilful and deliberate.

(3.) THE assessee went up in appeal before the Tribunal which by its order dt. 31st March, 1972, deleted the penalty on the ground that in face of demand notice showing 'nil' demand there was no tax payable by the assessee which could form basis of the computation of penalty. The Tribunal further noted that the 'nil' demand had resulted from the fact that the tax from the total income of the assessee came to Rs. 2,330/- and that the assessee had paid Rs. 862/- as advance tax and Rs. 1,468/- as self-assessed tax under s. 140A(1) of the Act.