COMMISSIONER OF INCOME TAX Vs. MONGHYR GUN MANUFACTURING CO OP SOCIETY LIMITED

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the I.T. Act, 1961, made by the Income-tax Appellate Tribunal, Patna "A", for the assessment year 1965-66. The Tribunal has referred the following two questions of law for opinion of this court :

(2.) FROM the statement of case submitted, the relevant facts that appear are these.

(3.) BEFORE the Tribunal it was submitted by the assessee that the society was making sales of guns on behalf of its members and the society was merely getting commission on these sales. It was, therefore, argued that the penalty was not leviable. On behalf of the Revenue, it was argued before the Tribunal that the penalty was leviable, as the difference between the returned income and the assessed income was as a result of some gross negligence on the part of the assessee. It was also argued that the revised return having been filed after April 1, 1968, the quantum of penalty was to be governed under the provisions of law which came into force from April 1, 1968.