COMMISSIONER OF INCOME TAX Vs. GOLECHA R K

JUDGEMENT

(1.) THIS reference at the instance of the Revenue is to answer the following question of law, namely:

(2.) THE relevant assessment year is 1969-70. THE assessee was a partner of a firm, S. Zoraster & Co. THE assessee was required to file his return of income for this assessment year on or before September 30, 1969, but he filed it only on December 29, 1970. THE ITO initiated penalty proceedings under s. 271(1)(a) of the Act. THE ITO rejected the explanation of the assessee showing sufficient cause for the delay in filing the return and imposed penalty of Rs. 7,242 under s. 271(1)(a) of the Act. THE AAC affirmed the ITO's view and rejected the assessee's appeal. THE Tribunal, however, allowed the assessee's appeal accepting the explanation given by the assessee to show the existence of sufficient cause for the delay in filing the return. THE penalty was accordingly set aside. Hence, this reference at the instance of the Revenue.