2013 (4) TMI 212

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.... is a reference under Section 256(1) of the Income Tax Act, 1961 by the Income Tax Appellate Tribunal, Jabalpur in R.A.99/Jab/1996 by which following question has been referred for the opinion of this Court. "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling penalty u/s 271(1)(c) levied by the A.O. at Rs.1,20,000/-?" Learned counsel ap....

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....the contentions, it would be appropriate if the factual position in the case is stated. The respondent was an assessee under the Income Tax Act and assessment order was framed, in which the rental income was found to be sham as it was subterfuge to reduce the burden of taxation by the assessee and the assessing officer had directed addition of the rental amount in the income of the respondent. The....

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....ion of the penalty and imposed a penalty of Rs.1,20,000/- on the respondent. This order was assailed before the CIT(A) but the appeal was dismissed. Thereafter, the matter travelled to the Income Tax Appellate Tribunal, Jabalpur in ITA No.693(JBL)/91 and the Tribunal had found that the addition of the income was already set aside, as per order passed by the Tribunal, so there was no question of im....