Judgment

PATHAK, J.:- These appeals by special leave are directed against the judgment of the High Court of Andhra Pradesh disposing of a reference under sub-s. (1) of S. 256 of the Income-tax Act, 1961 on the following questions of law :

1. Whether on the facts and in the circumstances of the case. the Appellate Tribunal was justified in concluding that the charging of interest indicated that the Income-tax Officer was satisfied that there was sufficient cause for delay in filing the return of income?

2.Whether on the facts and in the circumstances of the case. the Tribunal was justified in cancelling the penalties levied under S. 271(1)(a)?

2. The respondent assessee is a partner in the firm. M/s Manik Rao & Brothers. He filed voluntary returns for the assessment years 1959-60. 1460-61. 1961-62 and 1962-63. all on August 2. 1963. The return for the assessment year 1963-64 was filed on August 2, 1984. On account of the delay in filing the returns the Income Tax Officer treated the assessee as being in default and imposed penalties under cl.(a) of Sub-s.(1) of S. 271 of the Act. In appeal before the Appellate Assistant Commissioner of Income Tax the assessee contended that as the retur