Allahabad H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in its opinion that looking to the totality of the circumstances it could not be said that the assessee acted in conscious disregard of the statutory obligations or that its conduct was in any way dishonest or contumacious.

High Court Of Allahabad

CIT vs. J.K. Synthetics Ltd.

Section 256

M. Katju & U. Pandey, JJ.

IT Ref. No. 223 of 1979

23rd September, 2003

JUDGMENT

By the court :

This is reference under s. 256(2) of the IT Act in which the following question has been referred to us for our opinion : “Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in its opinion that looking to the totality of the circumstances it could not be said that the assessee acted in conscious disregard of the statutory obligations or that its conduct was in any way dishonest or contumacious.”

In the Tribunal’s appellate order a finding of fact has been recorded that it cannot be said that the assessee acted in conscious disregard of the statutory obligations or that its conduct was in any way dishonest or contumacious. This is a finding of fact and we cannot interfere with it in this reference. The question referred to us is therefore, decided in affirmative, i.e., in favour of the assessee and against the Department.

[Citation : 274 ITR 639]