(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion :
(2.) THE material facts giving rise to this reference, briefly, are as follows : For the assessment year 1973-74, the Income-tax Officer initiated proceedings against the assessee for imposition of penalty under Clause (a) of Section 271 (1) of the Act on account of delay in filing the return. THE defence of the assessee was that he could not file the return in time as the accounts of the firm of which he was a partner could not be finalised in time. THE Income-tax Officer did not accept the explanation of the assessee and imposed the penalty. On appeal, the Appellate Assistant Commissioner affirmed the order passed by the Income-tax Officer in this behalf. On further appeal, the Tribunal held that there was reasonable cause for not filing the return in time and in this view of the matter, the Tribunal allowed the appeal and set aside the order imposing penalty on the assessee. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.