JUDGMENT :

B.J. Divan, J.

In this case by an order of reference dated September 4, 1974, the following question has been referred to this Full Bench:

"When by a taxation statute, sanction of penalty is provided in order to enforce compliance with a particular provision of the Act and the section providing for penalty requires that the non-performance of the obligation without reasonable cause shall attract that particular penalty, (i) is absence of reasonable cause an ingredient of the offence for which the penalty is provided; and (ii) has the taxing authority to prove absence of reasonable cause or has the party in default to prove the presence of reasonable cause?"

2. The order of reference makes it clear that it was in the context of section 271(1)(a) of the Income-tax Act, 1961, that this question arose before the Division Bench and, therefore, in order to answer correctly the question that has been canvassed before us, we reframe the question as follows:

"When section 271(1)(a) of the Income-tax Act, 1961, provides for sanction of penalty in order to enforce compliance with a particular provision of the Act and the section requires that non-performance of the obligation without re