( 1 ) AT the instance of the Revenue, the following question has been REFERRED TO to this court by the Income-tax appellate Tribunal, Delhi Bench c , for opinion:

"whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in cancelling the order of penalty passed by the Inspecting Assistant Commissioner of Income-tax imposing a penalty of Rs. 12,000. 00 under section 271 (l) (c) read with section 274 ot the Income-tax Act 1961?"messrs. Narang and Company, a registered firm carrying on business in brass-ware goods and in exports and imports, is the assessee. The relevant assessment year is 1961-62, the previous year being the financial year ending on March 31. 1961. The Income-tax Officer found the following cash credits in sundry creditors account:the assessee explained that advances aggregating Rs. 20,000. 00 had been given to these parties in the sundry advances account, which on being received back during the relevant previous year were credited in the account. As this explanation was not considered proper and no further explanation could be rendered, the assessee surrendered these amounts voluntarily to be taxed as its inco