https://www.taxtmi.com/caselaws?id=38615 The penalty imposed on the assessee for the assessment year 1968-69 under the Explanation to section 271(1)(c) of the Income Tax Act was cancelled by the Tribunal on appeal. The Tribunal found that certain expenses disallowed by the Income-tax Officer should be deducted if they were bona fide incurred for earning income. After deducting the disputed salary amount, it was determined that the returned income was not less than 80% of the assessed income. Consequently, the Explanation to section 271(1)(c) was deemed inapplicable, and the penalty was rightly cancelled. The High Court ruled in favor of the assessee, awarding costs and counsel's fee. en-us Wed, 07 Apr 1976 00:00:00 +0530 Wed, 07 Apr 2010 15:40:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38615 The penalty imposed on the assessee for the assessment year 1968-69 under the Explanation to section 271(1)(c) of the Income Tax Act was cancelled by the Tribunal on appeal. The Tribunal found that certain expenses disallowed by the Income-tax Officer should be deducted if they were bona fide incurred for earning income. After deducting the disputed salary amount, it was determined that the returned income was not less than 80% of the assessed income. Consequently, the Explanation to section 271(1)(c) was deemed inapplicable, and the penalty was rightly cancelled. The High Court ruled in favor of the assessee, awarding costs and counsel's fee. Case-Laws Income Tax Wed, 07 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38615