The question whether there is a reasonable cause or not for delay in filing a return is a pure question of fact and no question of law arises therefrom.

D.K.Mahajan, J.

1. This order will dispose of Income-tax Cases Nos. 26, 27 and 28 of 1972.

2. The Commissioner of Income-tax, Patiala, has moved this court under Section 256(2) of the Income-tax Act, 1961, praying that in Income-tax Cases Nos. 26 and 27 of 1972, the following question of law should be referred for the opinion of this court;

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in reducing the quantum of penalty having been satisfied that the offence of concealment was there without any doubt ?"

3. In Income-tax Case No. 28 of 1972, the Commissioner wants the following two questions of law to be referred for the opinion of this court:

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified to hold that the assessee had a reasonable cause for late filing of return in March, 1968 ?

2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified to hold that there was a delay of one month only till February, 1964, when actually under Section 139(1) the delay was from October 1, 1963, to February 18, 1964, for four months?"

4. The facts of Income-tax Cases Nos. 26 and 27 of 1972 are identical. The only difference is that they pertain to two partners of M/s. Shahzada Hoisery Mills. I.T.C. No. 26 relates to Vidya Sagar and I.T.C. No. 27 relates to Anand Sagar. The dispute relates to the assessment year 1963-64. No return of income under Section 139(1) was received up to the end of November, 1963. A notice under Section 139(2) was served upon the assessees on December 12, 1963. In compliance with this notice, the assessees submitted a return declaring, besides other income, income from the registered firm at Rs. 34,849 (in I.T.C. No. 26) and at Rs. 34,779 (in I.T.C. No. 27) on February 21, 1964. Later on, the assessees submitted a revised return and the Income-tax Officer on 30th March, 1968, computed the income from the assessees1 share in the firm, Messrs. Shahzada Hosiery Mills, at Rs. 91,153. The Income-tax Officer was of the view that the assessees had concealed their income. He issued a notice under Section 274. The Income-tax Officer completed the assessment on March 30, 1968, on a total income of Rs. 94,727 in Case No. 26 and on Rs. 94,120 in Case No. 27, and this assessment was confirmed in appeal by the Appellate Assistant Commissioner, vide his order dated 1st September, 1969. In pursuance of the notice issued under Section 274, read with Section 271 of the Act, the penalty proceed-dings were referred to the Inspecting Assistant Commissioner of Income-tax under Section 274(2). The Inspecting Assistant Commissioner issued notices to the assessees on 27th December, 1969, which was served on them on 31st December, 1969. In pursuance of this notice, the assessees appeared before the Inspecting Assistant Commissioner from time to time. After hearing the assessees, the Inspecting Assistant Commissioner held in I.T.C. No. 26:

"That the assessee has concealed, the particulars of his income or deliberately furnished inaccurate particulars of such income amounting to Rs. 50,000 for the purposes of Clause (c) of Sub-section (1) of Section 271 of the Income-tax Act, 1961. I, therefore, direct that the assessee shall pay by way of penalty, in addition to any tax payable by him, a sum of Rs. 21,100 equal to about 50% of the tax which would have been avoided if the income as returned by the assessee had been accepted as the correct income."

5. In Income-tax Case No. 27, the penalty imposed by the Inspecting Assistant Commissioner was Rs. 20,600.

6. At this stage, it will be profitable to set out the facts of Income-tax Case No. 28 of 1972. Messrs. Shahzada Hosiery Mills is a registered firm. It manufactures hosiery goods. The dispute relates to the assessment year 1963-64. The partners of this firm are Shri Vidya Sagar and Shri Anand Sagar. The firm filed its return on 18th February, 1964, s