Prakash Krishna, J. - (1.) The Tribunal, Delhi, has referred the following question of law under Section 256(1) of the IT Act, 1961 (hereinafter referred to as the Act) for opinion to this Court : "Whether the Tribunal was right to cancel the penalty levied under Section 271(1)(a) treating the registered firm as unregistered firm in view of the provisions of Section 271(2) of the IT Act, while under similar circumstances penalty was held to be leviable in the case of Kalu Ram Ladha Ram v. CIT?"
(2.) Briefly stated the facts giving rise to the present case are as follows :
(3.) The reference relates to the asst. yr. 1983-84. The respondent-assessee, a partnership registered firm filed its return late with the delay of two complete months in its filing. The assessing authority initiated penalty proceeding under Section 271(1)(a) of the Act. The penalty proceeding was contested by the assessee, on the plea that the tax finally assessed was less than what has been paid by it as advance tax and, therefore, no penalty is leviable. This plea was not accepted by the assessing authority in view of Section 271(2) of the Act and he levied penalty of Rs. 10,541. The penalty order was confirmed in appeal, but has been set aside in further appeal by the Tribunal.;