2008 (3) TMI 263

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.... court was delivered by D. A. MEHTA J. - The Income-tax Appellate Tribunal, Ahmedabad Bench "A" has referred the following question under section 256(2) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, Baroda: "Whether on the facts the finding of the Appellate Tribunal that the penalty under section 271(1)(a) of the Income-tax Act, 1961 was not imposable after ....

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.... of Income. The assessee did not succeed in appeal before the Commissioner (Appeals). However, in second appeal before the Tribunal, the explanation tendered by the assessee was accepted and the Tribunal held that the assessee was not prevented by reasonable cause for the period up to August 1980 and thus reduced the period of default to 12 months. 4. Though served there is no appearance on beh....

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....nst the assessee and hence, the assessee could not have entertained a bona fide belief. 5. As can be seen from the impugned order of the Tribunal, the Tribunal has come to the conclusion that provisions of Section 271(1)(a) of the Act have been rightly invoked in this case. That as the Bombay High Court judgment had been delivered only in July, 1980 the assessee could not have entertained any r....

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....her part. In the circumstances, there is no issue of law which would require this Court to interfere. Existence or otherwise of a reasonable cause would always be dependant upon facts. The contention on behalf of the applicant-revenue that if there was a reasonable cause, as pleaded by the assessee, the assessee ought not to have filed the Return of Income does not merit acceptance. Firstly, the s....