2000 (1) TMI 32

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....t in cancelling the penalty under section 271(1)(c) of the Income-tax Act ?" The factual position as indicated in the statement of case is as follows Originally, the assessee had filed a return of income for the concerned assessment year, i.e., 1981-82, declaring a total income of Rs. 23,560 on October 10, 1981, and the assessment was completed under section 143(1) on January 25, 1984. On January 28, 1986, there was a search in the premises of the assessee under section 132 of the Act. On December 8, 1987, the assessee filed a return showing a sum of Rs. 1,00,000 as income under the head "Other sources", in addition to the income already assessed. As there was no scope for filing a revised return after completion of the assessment, the A....

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....he sources of investments or credits did not arise. Therefore, penalty levied was cancelled. Reliance was placed on a decision of the apex court in Sir Shadilal Sugar and General Mills Ltd. v. CIT [1987] 168 ITR 705. Since the application under section 256(1) of the Act was not entertained by the Tribunal, prayer for reference was made in the original petition, and as aforesaid the direction was given. Senior standing counsel for the Revenue submitted that the approach of the Tribunal is erroneous and the factual aspects have not been appreciated in the proper perspective. Learned counsel for the assessee, on the other hand, submitted that on analysing the factual position, the Tribunal has arrived at its conclusion and, therefore, no....