R.K. Agrawal and Rajes Kumar, JJ. - (1.) The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under Section 256 (1) of the Income Tax Act, 1961 (hereinafter , referred to as "the Act") for opinion to this Court. "Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was legally justified in confirming the decision of the D.C. (Appeals) deleting the penalties of Rs. 9,800/- each in the assessment years 1982-83 and 1.983-84 imposed Under Section 271(1)(b) of the I.T. Act?"
(2.) The reference relates to the Assessment Year 1982-83 and 1983-84 in proceeding arising out of imposition of penalty under Section 271(1)(b) of the Income Tax Act, 1961..
(3.) Briefly stated, the facts giving rise to the present reference are as follows.;