2002 (8) TMI 405

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.... This is an appeal by the Revenue which is aggrieved by the order of the CIT(A) dated 2nd February, 1997, hereinafter called the impugned order. The challenge by the Revenue to the order of the CIT(A) revolves around the fact that the CIT(A) has erred in deleting the penalty imposed by the AO under section 271(1)(c) of the IT Act. 2. The brief background of the present litigation is that the as....

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....s income as a result of which proceedings under section 271(1)(c) were initiated. Show cause notice was issued which was replied to. The reply filed by the assessee to the show cause notice did not find favour with the AO as a result of which the AO was pleased to impose penalty under section 271(1)(c) of the IT Act, to an extent of Rs. 30,610. 4. Being aggrieved by the order of the AO imposing....

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....ed by the ld. AR that the claim of the assessee made was bona fide and unless and until it is dishonestly made, the provisions of section 271(1)(c) of the IT Act cannot be invoked. In the present case, according to the ld. AR, there is nothing on the record which could suggest that the assessee had made his claim mala fidely. 8. We have heard the parties and taken ourselves through the record a....