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<h1>Tribunal cancels penalty under Income-tax Act section 271(1)(c); High Court upholds decision.</h1> <h3>Commissioner Of Income-Tax Versus Sohan Lal Savinder Singh Jagadhia</h3> Commissioner Of Income-Tax Versus Sohan Lal Savinder Singh Jagadhia - [1989] 178 ITR 628, 86 CTR 270, 45 TAXMANN 8 The High Court held that the Tribunal was right in canceling the penalty imposed on the assessee under section 271(1)(c) of the Income-tax Act. The Tribunal accepted the explanations provided by the assessee regarding additions made during assessment proceedings, leading to the cancellation of the penalty. The court referred to the Supreme Court's ruling in CIT v. Mussadilal Ram Bharose [1987] 165 ITR 14 to support its decision.