- (1.) At the instance of Assessee, Income Tax Appellate Tribunal, Allahabad (hereinafter referred to as Tribunal ) under section 256(2) of Income Tax Act 1961 (hereinafter referred to as ''Act 1961') has referred following two questions, involved in both these cases, for opinion of this Court: (1)Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that for imposing penalty under section 271B of I.T Act, 1961, its initiation in the course of assessment proceedings, is not necessary within the meaning of Section 275(b)(c) of the above Act? (2) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that the penalty order passed by the learned Assessing Officer on 30.10.1990 was within the period of limitation laid down in Section 275 of I.T Act, 1961?
(2.) Since both these cases relate to Assessment Years 1988-1989 and 1989-1990, involve similar questions, they have been heard together, and are being decided by this common judgment.
(3.) It is not disputed that notices dated 2.4.1990 and 26.6.1990 were issued to Assessee under section 271B of Act, 1961 requiring to show cause, why penalty be not imposed under the aforesaid provision, in respect of above mentioned Assessment Years for failure of Assessee in getting its accounts audited under section 44AB of Act.;