TIWANA, J. - (1.) THE following question of law is before us on a reference by the assessee: "Whether the Tribunal rightly dismissed the assessee's appeal and upheld the levy of penalties for default as determined by the AAC by holding that there could be no onus on the Revenue to establish the absence of reasonable cause or presence of mens rea ?"
(2.) IT is the undisputed position that a similar question under the IT Act, 1961 ('the Act') has already been considered by a Full Bench of this Court in CIT vs. Patram Dass Raja Ram Beri (1981) 24 CTR (P&H) 258 : (1981) 132 ITR 671, and in another Division Bench judgment of this Court in Haryana Iron & Stell Rolling Mills vs. CIT (1986) 51 CTR (P&H) 219 : (1987)164 ITR 779. Besides this, even their Lordships of the Supreme Court have also adjudicated upon a similar question under the Act in Gujarat Travancore Agency vs. CIT (1989) 77 CTR (SC) 174 : (1989) 177 ITR 455 : 44 Taxman 278. It has been ruled therein as under: "..........Unless there is something in the language of the statute indicating the need to establish the element of mens rea, it is generally sufficient to prove that a default in complying with the statute has occurred.... there is nothing in S. 271(1)(a) which requires that mens rea must be proved before penalty can be levied under that provision ...." Having perused this judgement we are of the opinion that the observations made in the above- noted decisions categorically answers the question before us in the affirmative in favour of the Revenue and against the assessee. We, therefore, hold accordingly.;