C.I.T. vs. Mp.State Handloom

ITR No.96/1998 19/2/2014 : None appears for the appellant. This application under Section 256(2) of the Income Tax Act was filed on 1st February 1998 and till date even notice on the same have not been issued. For the assessment of tax made in the years 1979-80 to 1985-1986 with regard to imposition of penalty as interference has been made by the Commissioner, Income Tax, Appeal and by the Income Tax Appellate Tribunal, this application has been filed by the revenue. It is the case of the revenue that penalty imposed has been interfered with on improper grounds. Having gone through the memorandum of appeal and the questions of law indicated therein, we are of the considered view that no case is made out for interference. The Tribunal has come to the conclusion that the explanation given by the assessee for the delay in depositing of the tax is attributed to certain delay in internal auditing of assessee's account and compulsory auditing required to be done by the statutory authorities under the M.P. Cooperative Societies Act. Finding the same to be bonafide, the Tribunal has interfered in the imposition of penalty. Respondent assessee is a Cooperative Society registered under the M.P. Cooperative Societies Act, 1960 and judicial notice can - 1 -1 -:2:- be taken of the fact that due to financial constrain the society has gone into winding up and writ petitions are pending before this Court as the Society is unable to pay pension to its retired employees. Considering all these factors, we are of the considered view that no useful purpose would be serve by reopening the assessment with regard to imposition of penalty for the assessment years in question now. That apart, the discretion exercised by the Tribunal in refusing to interfere with the imposition of penalty is based on reasonable consideration and we see no error warranting interference. The appeal is therefore, dismissed. ( Rajendra Menon) (A. K. Sharma) Judge Judge mrs.mishra 2