1996 (2) TMI 76

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.... cause so as to take it out of the provisions of section 271(1)(a) of the Income-tax Act, 1961, and are not the findings of 'bona fide belief entertained', wrong and unreasonable ? 2. Whether, on the facts and in the circumstances of the case and also in view of the fact that the total income determined being far more than the income returned, the Tribunal is factually correct in holding that the bona fide belief entertained by the assessee would constitute reasonable cause ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law and fact in holding that the belief regarding non-taxability of the income would constitute reasonable cause for the delay of more than two years in filing the return ev....

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....nalty by his order. The appellate authority cancelled the penalty on the ground that the assessee had reasonable cause and bona fide belief that its income is exempted under section 80P of the Income-tax Act. Relying on the decision of the Supreme Court in Assam Co-operative Apex Marketing Society Ltd. v. CIT (Addl.) [1993] 201 ITR 338 to contend that such income is not exempt at the hands of the co-operative society and also the decision of this court in CIT v. Kerala State Co-operative Marketing Federation Ltd. [1994] 207 ITR 319 (Income-tax Reference No. 33 of 1991), dated August 11, 1993, urging that the view that the assessee would be entitled to exemption was no longer good law, it was contended that in view of this position tha....

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....h the notice if the issuance of the notice is in accordance with, the provisions of section 148. It was contended that in such a situation satisfaction of the provisions of section 271(1)(a) of the Act would require separate consideration. Apart from the position that we find this aspect was not pressed into service before the authorities below, even if it is considered to be a question of law raised on the material existing, in our judgment, the situation would not be with any dent in regard thereto. The provisions of section 271(1)(a) of the Act would cover all the three contemplated situations. This would also be clear that even after reading the provisions of section 148 specifying that an action under section 148 of the Act postulates ....