Law: Income Tax Act, 1961

Section: 256

Income-tax----Reference---Penalty---Concealment of income---Additions made to income---No appeal by assessee against such additions---Levy of penalty--¬Cancellation of penalty by Tribunal on the ground that assessee could have succeeded in getting additions deleted---Cancellation of penalty whether justified was a question of law---Indian Income Tax Act, 1961 Ss.256 & 271(1)(c). For the assessment year 1983-84, the assessee had returned an income of Rs.99,690 but the Assessing Officer made addition of Rs.10,000 on account of certain undisclosed transactions of purchase and sale and of Rs.2,563 on account of discrepancies in the account of Bardana. The assessment was not challenged by the assessee and the additions became final. Subsequently, penalty proceedings were initiated and penalty was imposed. The Tribunal set aside the order of penalty holding that the assessee would have succeeded in getting the entire additions deleted but for his omission in filing any appeal against the assessment order. On an application to direct reference: Held, that the Tribunal, in allowing the appeal of the assessee, had proceeded on the assumption that had the assessee filed an appeal against the assessment, the additions made by the Assessing Officer would have been deleted. The question whether, on the facts and in the circumstances of the case, there was any material with the Income-tax Appellate Tribunal justifying cancellation of penalty under section 271(1)(c) of the Income Tax Act, 1961, had to be referred. JUDGMENT N.K. JAIN, J. ---By this application under section 256(2) of the Income Tax Act, 1961, (for short, "the Act"), the applicant-Department seeks a direction to the Income-tax Appellate Tribunal, Indore Bench, Indore, to state the case and refer the updernoted three questions said to be o1 law for the opinion of this Court arising out of its order, dated June 27, 1991, passed in I.T.A.No.460/Ind. of 1989 and its refusal to refer the case by order dated November 26, 1991, passed in R.A.No.252/Ind. of 1991 "(1) Whether on the facts and in the circumstances of the case, there was any material with the Income-tax Appellate Tribunal justifying cancellation of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492