- (1.) THE present appeal filed under Section 260A of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), against the order dated August 3, 1999, passed by the Income -tax Appellate Tribunal, Delhi, has been admitted, vide order dated December 10, 2002, on the following substantial question of law: Whether, on the facts and in the circumstances of the case, the Income -tax Appellate Tribunal was legally justified in upholding the decision of the Commissioner of Income -tax (Appeals) in reducing the penalty under Section 272A(2)(c) from Rs. 99,500 to Rs. 2,337 for the assessment year 1989 -90 whereas the relevant amendment made to this Section came into effect with effect from October 1, 1991, only.
(2.) THE appeal relates to the assessment year 1989 -90 in respect of penalty imposed under Section 272A(2)(c) of the Act. Briefly stated, the facts giving rise to the present case are as under:
(3.) THE respondent -assessee commenced its business during the year 1989 -90. It was required to deduct tax and pay to the Government exchequer the tax was deducted. However, statement in Form No. 26A which was required to be filed by June 30, 1989, was not filed. Penalty proceedings were initiated, vide notice dated March 5, 1992. The reply was submitted on May 1, 1992. Form No. 26A was filed on January 20, 1992. The total amount of tax deductible was Rs. 2,337. The assessing authority imposed Rs. 99,500 as penalty treating the period of penalty by 995 days and Income -tax (Appeals), Meerut, partly allowed the appeal and reduced the penalty to Rs. 2,337, which order has been upheld by the Tribunal.;