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TMI Blog1995 (11) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in view of the non-obstante clause found in section 271(2) of the Income-tax Act, 1961, the term ' assessed tax ' occurring in section 271(1)(i)(b) has to be construed de hors the Explanation thereto ? 2. Whether, the Income-tax Appellate Tribunal was correct in law in holding that reading together the provisions of sub-section (1)(i) and (2) of section 271 it is not the amount of advance tax which was actually paid by the registered firm that is material for deduction from the amount of tax payable on the income of a registered firm treated as an unregistered firm under section 271(2), but it is the amount of advance tax payable by such an unregistered firm, which is relevant for the purpose of quantifying the amount of penalty levia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with the provisions of section 271(1), in our view, give rise to an arguable question of law. There is no direct decision of this court on the point. Though learned counsel for the respondent relied on some of the observations in P. Venkata Krishnayya Naidu and Son v. CIT [1984] 150 ITR 545 (AP), we do not think that the ratio of that judgment directly gets attracted to the present case. We are not at all sure that the said judgment comes to the aid of the respondent, as the question involved therein was not identical. Learned counsel for the respondent then relied on a decision of this court in R. C. No. 105 of 1987 (CIT v. Om Trading Co. [1996] 220 ITR 149), dated August 24, 1995, wherein the Division Bench referred to a circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view expressed by the Bombay High Court. With regard to R. C. No. 105 of 1989, learned standing counsel clarifies that the Commissioner had decided to withdraw the reference not because of the circular but because by the time R. C. came up for hearing, the principle of law was settled by the Supreme Court. For all these reasons, we are of the view that it is a fit case to direct reference of the following questions : " 1. Whether the Income-tax Appellate Tribunal was correct in law in holding that in view of the non-obstante clause found in section 271(2) of the Income-tax Act, the term ' assessed tax ' occurring in section 271(1)(i)(b) has to be construed de hors the Explanation thereto ? 2. Whether the Tribunal is justified i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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