Shyamal Kumar Sen, J. - (1.) On an application under Section 256(1) of the Income-tax Act, 1961, the following questions have been referred to this court for determination : "(1) Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the assessee had bona fide reasons to believe that it had no taxable income and as such it was not liable to file an estimate of advance tax under Section 209A(1)(b) of the Income-tax Act, 1961, is based on any relevant material or perverse ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the penalty imposed under Section 273(2)(b) of the Income-tax Act, 1961 ?"
(2.) The facts, inter alia, as appear from the statement of case are that the assessee filed its return of income for the assessment year 1979-80 disclosing nil income after adjustment of business loss of the year and after taking into account the deduction admissible under Section 80M of the Income-tax Act, 1961. The assessment was completed on a total income of Rs. 2,47,571 which, in appeal, was reduced to Rs. 2,34,850. Finding that the assessee had defaulted in furnishing an estimate of advance tax payable by it as required under Section 209A(1)(b), the Income-tax Officer initiated penalty proceedings under Section 273(2)(b). The assessee submitted its explanation which was rejected by the Income-tax Officer who levied a penalty of Rs. 20,000.
(3.) The assessee carried the matter before the Commissioner of Income-tax (Appeals) but it was unsuccessful.;