BHANDARI, C.J. —This is a reference by the Income-Tax Appellate Tribunal, Delhi Bench A, hereinafter called the Tribunal, under sec. 256(1) of the Indian Income-Tax Act, 1961, hereinafter called the Act, made at the instance of the Commissioner of the Income-Tax.

2. Messrs. Indra and Company, Jodhpur a registered firm under the Act and one of its partner Shri Jiwanlal Maheshwari had to submit their income-tax returns under sec. 139(1) of the Act by or before 30th June, 1962.Both of them made applications to the Income-Tax Officer, A Ward, Jodhpur, for extending the time for filing their returns and the time was extended upto 31-8-62 in both the cases. Again applications were made for extension of the time and they were granted time upto 20-9-62 and further extension was granted upto 30-9-62, but the returns were not filed even on that day. The said Income-tax Officer then served notices on the assessees under sec. 130(4) of the Act calling upon them to file returns within thirty days and the returns were then filed on 25-4-63. During the course of assessment proceedings, the Income-Tax Officer issued notices against the assesses to show cause why penalty should not be imposed for f

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