1997 (1) TMI 24

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the Revenue, the Appellate Tribunal has referred the following questions under section 256(1) of the Income-tax Act, 1961, for our opinion : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that penalty under section 271(1)(a) leviable in this case, should be restricted to Rs. 1,000 against Rs. 6,908 leviable as per the provisions of section 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....turn in time and, hence, he cancelled the penalty, though he found that the penalty that would be leviable would be Rs. 6,908. On further appeal by the Revenue, the Income-tax Appellate Tribunal accepted the case of the Department that there was no reasonable cause on the part of the assessee in not filing the return within the time prescribed by the statute and the finding that there was no reaso....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duce the penalty to a sum below the one prescribed by the statute. The assessee remained unrepresented and after hearing learned senior standing counsel for the Department and after perusing the records, we find that the contention of learned senior counsel for the Department has force. Under the provisions of section 271(1)(a) of the Income-tax Act, 1961, if the Income-tax Officer is satisfied th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he statute. The Appellate Tribunal is an authority functioning under the provisions of the Income-tax Act and after the Tribunal has recorded a finding that penalty is attracted, it has no jurisdiction to reduce the amount of penalty than the one prescribed under that section. The question whether the authorities functioning under the Act can reduce the quantum of penalty below the one prescribed ....