Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1984-85 - Assessee was engaged in puchase and sale of bhusi, chuni etc. - During year under consideration, assessee had shown purchases of chuni/bhusi from five parties - On enquiry, purchases from there parties were found to be bogus - Thus, certain amount was added to assessee's declared income which was confirmed by Tribunal - Assessing Officer also passed a penalty order under section 271(1)(c) - Tribunal deleted penalty on ground that explanation given by assessee was bona fide and all material facts for computing income were disclosed - Whether since finding recorded by Tribunal was based on material available on record, it did not call for any interference - Held, yes A.N. Mahajan for the Appellant. R.R. Kapoor for the Respondent. JUDGMENT 1. The Income-tax Appellate Tribunal, Allahabad has referred the following questions of law section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), for opinion of this court : "Whether on the facts and in the circumstances of the case had having confirmed the addition of Rs. 89,273 on account of bogus purchases, the Appellate Tribunal was legally justified in holding that the proviso belowExplanation 1(B) of section 271(1)(c) was applicable and thereby cancelling the penalty of Rs. 22,000 imposed under section 271(1)(c) of the Income-tax Act, 1961 ?" 2. The reference relates to the assessment year 1984-85. 3. In the proceeding arising out of the penalty imposed under section 271(1)(c) of the Act the respondent-assessee, which is a registered firm, is engaged in milling of grams, pulses and rice and also carried on business of purchase and sale of bhusi, chuni, etc. During the year under consideration, amongst others, the assessee had shown purchases of chuni/bhusi of the value of Rs. 89,273 from five parties. On the enquiry, the purchases from three…

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