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Judgment
I. S. TIWANA, J. :
The following question of law is before us on a reference by the assessee :
"Whether, the Tribunal rightly dismissed the assessees appeal and upheld the levy of penalties for default as determined by the AAC by holding that there could be no onus on the Revenue to establish the absence of reasonable cause or presence of mens rea ?"
It is the undisputed position that a similar question under the IT Act has already been considered by a Full Bench of this Court reported as COMMISSIONER OF Income Tax, PATIALA-II Vs. PATRAM DASS RAJA RAM BERI., , and in another Division Bench judgment of this Court reported as Haryana Iron and Steel Rolling Mills Vs. Commissioner of Income Tax, . Besides this, even their Lordships of the Supreme Court have also adjudicated upon a similar question under the IT Act reported as Gujarat Travancore Agency, Cochin Vs. Commissioner of Income Tax, Kerala, Ernakulam, . It has been ruled therein as under.
"Unless there is something in the language of the statute indicating the need to establish the element of mens rea, it is generally sufficient to prove that a default in complying with the statute has occurred. There is nothing in s. 271(1)(a) which requires that mens rea must be proved before penalty can be levied under that provision.
Having perused this judgment we are of the opinion that the observations made in the above noted decisions categorically answer the question before us in affirmative in favour of the Revenue and against the assessee. We, therefore, hold accordingly.