1990 (11) TMI 125

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.... J. -Under section 256(2) of the Income-tax Act, 1961, the Tribunal has stated the following question : "Whether, on the facts and in the circumstances of the case the Tribunal was legally justified in cancelling the penalty without recording a finding that there was reasonable cause for the delay in furnishing the return ? The assessee is a firm. It was constituted on April 1, 1968. For the....

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.... Officer levied penalty which was confirmed in appeal. The Tribunal, on further appeal, set aside the penalty on a reasoning which appears to us to be not in accordance with law. This is all what they said in para 4 : "4. We have considered the rival contentions carefully. In the instant case, no notice under section 139(2) was issued and the assessee had voluntarily filed the return and the re....

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....nal erred in deleting the penalty. It may be that it was the first year of the business of the assessee. It may also be that the return filed by him had been accepted but those facts may be relevant on the question of quantum, if any, but in the absence of any explanation whatsoever, the Tribunal was in error in setting aside the penalty. For the above reasons, the question referred is answered in....