TaxTMI 
TaxTMI 
2014 (10) TMI 249
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....d be heard only on two points, which are as follows : "(1) Whether the Tribunal was not justified in law in cancelling the penalty levied under section 271(1)(a) of the Income-tax Act even though there is no nexus between the assessment proceedings of the firm and the obligation of the assessees to file individual returns ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in presuming that an order of waiver passed in terms of section 273A of the Income-tax Act should be regarded as a good reason for cancelling the penalties levied under section 271(1)(a) and section 271(1)(c) of the Income-tax Act ?" The assessees filed....
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....was found that the compensation amount received on account of acquisition of one of the properties of the firm was shown to be capital gains and that apart a portion of the assets transferred to other companies was also shown to be capital gains. These returns filed by the firm were not accepted by the Assessing Officer and it was held that there is no existence of partnership firm and a group of persons were assessees and moreover the income shown as capital gains was not accepted and it was treated to be the income from business. On appeal being taken, the appellate authority held that the income shown in the returns should not be treated as income from business and should be treated as the income on account of capital gains. It was, howe....
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....a) and sustained in the cases of Somanadri Bhupal for the assessment years 1983-84 and 1985-86 and in the case of Smt. Shalini Bhupal for the assessment year 1983-84 are liable to be cancelled." In coming to the conclusion, the Tribunal found on fact as under : "In this case, the assessees have a strong reason. Penalties are levied with reference to the revised returns filed in the individual capacities and assessments thereon. It is only after the order of the Commissioner of Income-tax (Appeals) in the appellate proceedings on the assessment in the case of the firm, that the appellants could file their individual returns. It is long after the filing of the original....