R.K.AGARWAL,J. - (1.) THE Income 1 ax Appellate Tribunal, New Delhi ha. 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 circumstance s of the case, the Tribunal was, in law, justified in cancelling the penalties amounting to Rs. 67,618/ - and v. 1, 99, 888/ - imposed under Section 201(1)/221 for the default during the financial years 1982 -83 and 1983 -84?
(2.) THE reference relates to the Financial Years 1982 -83 and 1983 -84 in proceedings relating to imposition of penalty under Section 201(1)/221 of the Act. The respondent assessee is a Development Authority. During the aforesaid financial years, the Development Authority failed to comply with the provisions regarding tax deducted at source from the amount paid to various contractors. It had also not filed the appropriate form with the Income -tax Department nor the amount of tax deducted at source from time to time was deposited by it. The Income Tax Officer initiated penalty proceeding under Section 221 of the Act and after considering the reply and the material on record, levied a total sum of Rs. 2, 67,510/ - as penalty. The aforesaid amount is the sum total of the various penalties levied for the default committed in different periods by the Development Authority.
(3.) FEELING aggrieved, the Development Authority preferred an appeal before the Appellate Assistant Commissioner of Income Tax, Bareilly, who, vide order dated 3.9.1986, had partly allowed the appeal granting a relief of Rs. 67,610/ -.;