Assessee-firm penalty upheld by High Court due to limitation bar. Tribunal decision overturned.

The High Court of Madhya Pradesh upheld the penalty imposed on an assessee-firm, ruling it was not illegal due to not being barred by limitation. The Tribunal's decision to cancel the penalty was overturned based on amended provisions of section 275 of the Income-tax Act, 1961. The reference was answered in the negative, with each party bearing their own costs.

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The High Court of Madhya Pradesh ruled that the penalty imposed on an assessee-firm was not illegal due to being barred by limitation. The Tribunal's decision to cancel the penalty was overturned based on the amended provisions of section 275 of the Income-tax Act, 1961. The reference was answered in the negative, against the assessee, and each party will bear their own costs.

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