COMMISSIONER OF INCOME TAX Vs. KALYANI SELECTED KARGALLIA COLLIERY

JUDGEMENT

(1.) UNDER Section 256(1) of the I.T. Act, 1961, the Income-tax Appellate Tribunal " B " Bench, Patna, has submitted the statement of case and has referred the following question for the opinion of this court:

(2.) BRIEF facts are as follows : The case relates to the assessment year 1966-67. The filing of the return by the assessee was due by September 30, 1966. Notice under Section 139(2) of the I.T. Act, 1961 (hereinafter to be referred to as "the Act "), was sent by registered post on April 28, 1966. According to the stand of the Revenue, the notice is supposed to have been served by May 4, 1966. The assessee filed its first return on November 8, 1966, which was signed by its accountant, Shri K.T. Doshi. On being pointed out this defect in the course of the assessment proceeding, another return under the signature of a partner of the firm was filed on August 6, 1968. As no valid return was filed till this date (August 6, 1968), the ITO initiated penalty proceedings under Section 271(1)(a) and levied a penalty of Rs. 28,298 for the default for a period of about 24 months. A copy of the order of the ITO has been marked annex. A to the statement of the case.

(3.) SECTION 271(1)(a) reads as follows :