R.K.AGRAWAL,J. - (1.) THE Income -tax Appellate Tribunal, Allahabad has referred the following question of law under Section 256(2) 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 the Tribunal was justified in law in holding that the penalty imposed Under Section 271B on 23 -10 -90, was not barred by limitation in view of the provisions of Section 275 of I.T. Act?
(2.) THE present reference relates to the Assessment Year 1986 -87 in respect of the penalty imposed under Section 271B of the Act. Briefly stated the facts giving rise to the present reference are as follows.
(3.) THE applicant is a private limited company engaged in the business of carpet etc. Its accounts are required to be audited by a Chartered Accountant under Section 44AB of the Act, For the Assessment Year 1986 -87, for which previous year of the applicant ended on 31st March, 1986, the applicant was required to get its accounts audited and to obtain the audit report by 31st July, 1986. The audit report was, however, obtained on 10th September, 1986 and was filed along with the return of income on 22nd October, 1986. The assessment for the Assessment Year 1986 -87 was completed on 30th March, 1988 vide order under the provisions of Section 143(3) of the Act. In the assessment order there was no mention of the initiation of penalty proceedings under Section 271B of the Act. It was initiated by issuance of a show cause notice dated 16th January, 1989. The explanation given by the applicant was not found to be satisfactory by the assessing authority and vide order dated 23rd October, 1990 a penalty of Rs. 95,007/ - was imposed under Section 271B of the Act. Peeling aggrieved the applicant preferred an appeal before the Commissioner of Income -tax (Appeals), Varanasi who vide order dated 15th January, 1993 had confirmed the penalty. Still feeling aggrieved the applicant preferred a further appeal before the Tribunal. The Tribunal has dismissed the appeal.;