https://www.taxtmi.com/caselaws?id=39082 The court ruled in favor of the assessee, canceling the penalty order imposed under section 271(1)(c) of the Income-tax Act, 1961. The court held that the assessee had met the burden of proof by showing no gross neglect or fraud in income reporting, as the lower profit rate in the return did not necessarily indicate incorrect reporting. The Tribunal's decision was upheld, emphasizing that maintaining unsatisfactory account books did not amount to gross neglect, especially when the return was based on regularly maintained accounts. The assessee was awarded costs of Rs. 200. en-us Thu, 14 Feb 1974 00:00:00 +0530 Mon, 12 Apr 2010 13:52:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39082 The court ruled in favor of the assessee, canceling the penalty order imposed under section 271(1)(c) of the Income-tax Act, 1961. The court held that the assessee had met the burden of proof by showing no gross neglect or fraud in income reporting, as the lower profit rate in the return did not necessarily indicate incorrect reporting. The Tribunal's decision was upheld, emphasizing that maintaining unsatisfactory account books did not amount to gross neglect, especially when the return was based on regularly maintained accounts. The assessee was awarded costs of Rs. 200. Case-Laws Income Tax Thu, 14 Feb 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39082