- (1.) THIS application has been filed under S. 256(2) of the IT Act, 1961. The CIT, Meerut, has prayed for a direction to the Tribunal to draw up the statement of the case and to refer the following question of law for the opinion to this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in deleting the penalty under S. 271(1)(b) on the basis that the computation of penalty under S. 271 (1)(ii) could not be made in this case, ignoring the fact that the return filed by the assessee on 28th July, 1986, though invalid showing total loss of Rs. 390 and agricultural income at Rs. 10,000 could be taken into consideration for computing the amount of penalty leviable under S. 271(1)(ii) of the IT Act, 1961?"
(2.) WE have heard Sri Prakash Krishna, learned counsel for the applicant. Nobody has put in appearance on behalf of the assessee despite service of notice for which an affidavit of service has also been filed. In our opinion, the question raised by the Revenue is a question of law arising out of the Tribunal. Accordingly, we direct the Tribunal, Delhi Bench "D", New Delhi, to draw up a statement of the case and refer the aforementioned question of law to this Court. In the result, the income tax application is allowed.;