1990 (10) TMI 60

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.... Appellate Tribunal has referred the following question under section 256(2) of the Income-tax Act, 1961. "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in cancelling the penalty imposed under section 271 (1)(c) of the Income-tax Act, 1961 ?" The relevant facts are the following : The assessee is a registered firm. For the assessment year 1....

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....constituted the concealed income of the assessee. Since there was no material except the fact that the explanation offered by the assessee was rejected, the Tribunal held that the imposition of penalty is not warranted. The reasoning of the Tribunal is contained in the following extract : "We have considered the facts of the case very carefully and we are of the opinion that the assessee has ri....

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....0] 76 ITR 696, cannot be understood in absolute terms and if it is so done, it, would amount to asking the Department to prove the impossible. We do not know. The decision of the Supreme Court is binding upon us. Indeed, the facts in the case of Anwar Ali [1970] 76 ITR 696 (SC) were more prejudicial to the assessee and yet it was held that, in the absence of any material other than the fact that t....