https://www.taxtmi.com/caselaws?id=5382 SC held that both the Appellate Assistant Commissioner (AAC) and Tribunal erred in cancelling the penalty imposed under section 271(1)(a) of the Income-tax Act, 1961, on the ground that the original computation of penalty by the Income-tax Officer was illegal. Interpreting section 251(1)(b), SC ruled that the AAC had jurisdiction not only to cancel but also to enhance the penalty in accordance with law upon finding the original computation defective. SC further held that the HC wrongly restricted the scope of the reference under section 256(1). The impugned HC judgment was set aside and the matter remanded to the AAC to consider enhancement of penalty in law. en-us Thu, 24 Sep 1992 00:00:00 +0530 Wed, 10 Dec 2025 21:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5382 SC held that both the Appellate Assistant Commissioner (AAC) and Tribunal erred in cancelling the penalty imposed under section 271(1)(a) of the Income-tax Act, 1961, on the ground that the original computation of penalty by the Income-tax Officer was illegal. Interpreting section 251(1)(b), SC ruled that the AAC had jurisdiction not only to cancel but also to enhance the penalty in accordance with law upon finding the original computation defective. SC further held that the HC wrongly restricted the scope of the reference under section 256(1). The impugned HC judgment was set aside and the matter remanded to the AAC to consider enhancement of penalty in law. Case-Laws Income Tax Thu, 24 Sep 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5382