M. R. A. ANSARI, J.

( 1 ) THE following question has been REFERRED TO to this Court by the Income-tax Appellate Tribunal (hereinafter REFERRED TO to as the Tribunal) under section 256 (1) of the Income-tax Act, 1961 (hereinafter REFERRED TO to as the new Act):

"whether en the facts and in the circumstances of the case, the Tribunal was in law competent to reduce the penalty levied undersection 271 (1) (a) to a figure lower than the sum equal to 2/g of the tax for every month during which the default continued but not exceeding the aggregate 50^ of the tax?"

( 2 ) THE relevant facts may be briefly stated. The income tax return of the respondent herein, who will be REFERRED TO to hereinafter as the assessee, for the assessment year 1961-62 was due to be filed on or before z8-9-1961. The assessee did not file the return by that date nor did she apply for extension of time for filing the return. The return was filed en 3-5-1962, i. e. , after a delay of about 7 months. When the Income-tax Officer proposed to levy a penalty for the late filing of the return, the assessee pleaded that her husband was ill and that she had to leave the station for a long period. She also stated that she was

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