Law:

Section:

Explanation to section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1966-67 - ITO imposed penalty upon assessee under section 271(1)(c) read with Explanation thereto - Tribunal cancelled penalty imposed upon assessee without adopting proper approach flowing from Explanation to section 271(1)(c) - Whether Tribunal was justified in cancelling penalty imposed upon assessee under section 271(1)(c) - Held, no [matter required reconsideration by Tribunal] FACTS For concealment of income the ITO imposed penalty upon the assessee under section 271(1)(c) read with Explanation thereto. The Tribunal, however, cancelled the penalty imposed upon the assessee. It, inter alia, followed the of the Punjab and Haryana High Court in Addl. CIT v. Karnail Singh V. Kaleran [1974] 94 ITR 505, holding that the Explanation appended to section 271(1)(c) by the Finance Act, 1964, did not supersede the decision of the Supreme Court in the case of CIT v. Anwar Ali [1970] 76 ITR 696. On reference: HELD Ongoing through the order of the Tribunal, it appeared that the Tribunal's order did not contain any reference to the Explanation to section 271(1)(c) and its effect. The said Explanation was referred to only while setting out the principle of the decision of Punjab and Haryana High Court in Karnail Singh V. Kaleran's case (supra ). The effect of the Explanation to section 271(1)(c) has been set out by the Supreme Court in two recent decisions in CIT v. Mussadilal Ram Bharose [1987] 165 ITR 14/30 Taxman 546H and CIT v. K.R. Sadayappan [1990] 185 ITR 49/ 51 Taxman 304 . Since, the Tribunal had not examined the case in proper light and had not adopted the proper approach flowing from the Explanation to section 271(1)(c ), the reference was returned to the Tribunal for reconsideration of the matter in the light of the decisions of the Supreme Court in Mussadilal Ram Bharose's case (supra ) and K.R. Sadayappan's case (supra). CASES REFERRED TO Addl. CIT v. Karnail Singh V. Kaleran [1974] 94 ITR 505 (Punj. & Har.), CIT v. Anwar Ali [1970] 76 ITR 696 (SC), CIT v.Mussadilal Ram Bharose [1987] 165 ITR 14/30 Taxman 546H (SC) and CIT v. K.R.…

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