C.S.Tiwana, J.

1. In this reference made by the Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, Patiala II, Patiala, the main point for determination is whether on the failure of an assessee to furnish a return, no penalty can be imposed prior to the date of the default made in pursuance of a notice issued under Section 148 of the I.T. Act, 1961 (hereinafter referred to as "the Act"). The other minor point upon which reference has been made is for determination of this fact whether an assessee can be allowed to raise a new ground of attack in appeal before the Tribunal in the absence of that ground having been taken before the ITO.

2. The relevant facts of the case in hand may be stated with the help of the order of reference dated July 22, 1975. The assessee is M/s. Dehati Co-operative Marketing-cum-Processing Society, Sangrur. The assessee had to furnish the return of income under Section 139(1)(a) of the Act before June 30, 1969. A notice under Section 148 of the Act was served on the assessee on August 10, 1970, calling upon it to furnish a return before September 9, 1970. The return was belatedly filed on February 24, 1971. There was th