Judgment

HEGDE, J. :- This appeal by certificate arises from the decision of the Calcutta High Court in a case stated by the Income-tax Appellate Tribunal B Bench, Calcutta. After setting out the relevant facts, the Tribunal solicited the opinion of the High Court on the following question of law :

"Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that in calculating the penalty leviable under Section 271 (1) (a) (i) of the Income-tax Act, 1961 the amount paid by the assessee under the provisional assessment under Section 23-B of the Indian Income-tax Act, 1922, was to be deducted from the amount of tax determined under Section 23 (2) of that Act in order to determine the amount of tax on which the computation of the penalty was to be based and in reducing the amount of the penalty imposed on the assessee to Rupeees 2,737/-."

2. The High Court answered that question in the affirmative and in favour of the assessee. Aggrieved by that decision, the Commissioner has brought this appeal.

3. Let us now proceed to state the facts relevant for deciding the point in issue, as could be gathered from the statement of the case.

4. In this case we are c