COMMISSIONER OF INCOME TAX Vs. ASSAM TRAVELS SHIPPING SERVICE

JUDGEMENT

(1.) BY a common judgment the Income-tax Appellate Tribunal, Gauhati Bench, hereinafter referred to as " the Tribunal ", disposed of I.T.As. Nos. III (Gauhati) and 112 (Gauhati) of 1971-72, relating to penalties in assessment years 1963-64 and 1964-65. There were two reference petitions and the Tribunal has referred the following common question of law to the High Court under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as " the Act" :

(2.) THE facts of the case may be briefly stated as follows: In the assessment year 1963-64, the Income-tax Officer found that the assessee's accounting year ended on September 30, 1962, and, therefore, it was required to submit the return of income on or before June 30, 1963. But the assessee submitted the return on October 3, 1964, and thus there was a delay of 15 months in the submission of the return for the assessment year 1963-6,4. THE Income-tax Officer, therefore, initiated the penalty proceedings under Section 271(1)(a) of the Act and imposed a penalty of Rs. 6,944.

(3.) THE department being aggrieved by the order of the Appellate Assistant Commissioner, preferred two appeals before the Tribunal. On the reasonings given in its common order, the Tribunal upheld the order of the Appellate Assistant Commissioner setting aside the impugned orders of penalty passed by the Income-tax Officer. THEreafter, on the application of the Commissioner of Income-tax under Section 256(1) of the Act, the above common question of law has been referred.