BHOPINDER SINGH DHILLON, J. - (1.) FOR the asst. yr. 1962-63, the assessee was required to file the return of income by the extended date on 30th Nov., 1962. The assessee, however, filed the return of income on 20th June, 1963. For the delay of about seven months in the submission of the return of income, the ITO initiated penalty proceedings under S. 271 (1)(a) of the IT Act, 1961 (hereinafter referred to as the Act) and issued a show-cause notice to the assessee. In response to the show-cause notice the assessee filed written reply on 21st Jan., 1969, wherein it was pleaded that the assessee had been applying for extension of time to file the return of income from time to time. The ITO did not accept the plea of the assessee and imposed a penalty of Rs. 10,500 under S. 271 (1)(a) of the Act.
(2.) THE appeal filed by the assessee before the AAC was partly dismissed. The AAC reduced the amount of penalty to Rs. 9,000 as against Rs. 10,500. The assessee filed a second appeal before the Tribunal, Amritsar Bench, (herein after referred to as the Tribunal). The Tribunal held that the fact that the assessee filed two applications for extension of time on 30th Jan., 1963 and 29th March 1963, on the ground that he was ill and that his accountant had left the service was found by the AAC to be factually correct. The Tribunal was of the opinion that the default on the part of the return of income beyond 30th Jan., 1963, when he made the first application for extension of time, was not wilful or deliberate as the assessee had been keen to file the return and, therefore applied for getting the extension of time. The Tribunal was of the view that this fact goes to prove the bona fide of the assessee. The Tribunal, therefore, held that the delay on the part of the assessee beyond 30th Jan., 1963, was covered by reasonable cause and no penalty for this period could be imposed on the assessee. However, for the period from 1st Dec., 1962, to 29th Jan., 1963, the penalty was held to be inexcusable.
(3.) THE Revenue approached the Tribunal with the prayer that the following question, which, according to the Revenue, is a question of law, be referred to this Court for its opinion : "Whether on the facts and in the circumstances of the case the Tribunal is correct in holding that the default of late filing of the return is only for the period 1st Dec., 1962 to 29th Jan., 1963 ?";