2015 (2) TMI 763

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....ashi Dhugga, Advocate JUDGMENT HEMANT GUPTA, J.(Oral)   The present reference has been filed by the assessee under Section 256(2) of the Income Tax Act, 1961(for short, "the Act") pertaining to the assessment years 1985-86, 1986-87 and 1987-88, raising following substantial question of law:            "Whether in the facts and circumsta....

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....e returned and assessed is tabulated hereunder:-    Ass.Years Original returns(Rs.) Income as per revised returns(Rs.) Income assessed (Rs.) Difference of Income (Rs.) 1985-86  24,916/-  2,18,763/- 2,88,763/-  70,000/- 1986-87 33,040/- 2,24,883/-  2,50,888/-  26,000/- 1987-88 6,890/- 1,38,988/- 1,98,988/- ....

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....ave been added by estimation which is not a valid ground for attracting penalty, while maintaining penalty for the years in question.   Learned counsel for the assessee has argued that the income assessed is primarily on the basis of household expenses which have been found untenable by the Tribunal in respect of three other assessment years. Therefore, the income assessed is based upon es....

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....sed income was based upon estimated household expenses. Since such basis have been taken into consideration for three assessment years, we find that such reason cannot be the basis of setting aside the penalty in the three subsequent years i.e. 1985-86, 1986-87 and 1987-88, as the Tribunal itself has treated the years in question differently. The Tribunal has considered the revised income on the b....