Commissioner of Income Tax vs Janta Service Station

G.S. Singhvi J.—By an order dated March 30, 1998, passed u/s 256(1) of the Income Tax Act, 1961 (for short, "the Act"), the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), referred the following question of law to this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the order of the Commissioner of Income Tax (Appeals) who upheld the penalty levied by the Assessing Officer u/s 271B on the ground that the same was not leviable in a case where the audit report u/s 44AB had been obtained on or before the specified date but the same had been filed along with a return u/s 139(4) and not u/s 139(1) and no notice being issued u/s 142(1) asking the assessee to file the return of income ?"

The facts which have a bearing on the decision of the aforementioned question are that after finalisation of the assessment for the assessment year 1990-91 u/s 143(3) of the Act. the Assessing Officer initiated action against the assessee-respondent u/s 271B of the Act on the ground that it had not furnished the audit report as required by law and after hearing its representative, he passed the order imposing penalty u/s 271B of the Act. The appeal filed by the assessee was dismissed by the Commissioner of Income Tax (Appeals), Shimla, and the penalty imposed by the Assessing Officer was upheld. That order was set aside by the Tribunal.

We have heard Shri R. P. Sawhney, senior advocate appearing for the Revenue. Learned counsel fairly stated that the question similar to the one referred by the Tribunal has already been answered by this court in favour of the assessee in I. T. A. No. 39 of 1999- Income Tax Officer Vs. Kaysons India, , decided on February 3, 2000.

We have gone through the order dated February 3, 2000, passed in I. T. A. No. 39 of 1999 Income Tax Officer Vs. Kaysons India, and are of the opinion that in view of the said order, the reference made by the Tribunal deserves to be answered in favour of the assessee. Ordered accordingly.

The reference is disposed of in the manner indicated above.