1989 (3) TMI 37

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....TG. C. J. - By this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was liable to pay penalty under section 2....

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.... 271(1)(a) of the Act. The appeal preferred by the assessee before the Appellate Assistant Commissioner was dismissed. The second appeal filed by the assessee before the Tribunal was also dismissed. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this court for its opini....

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....ourt held that regard being had to the fact that payment of interest was only compensatory in nature, the question of payment of any compensation did not arise when the entire amount of tax was paid by way of advance tax. This decision is not attracted in considering the question of imposition of penalty under section 271(1)(a) of the Act. In Delux Publishing Co. v. Addl. CIT [1981] 127 ITR 782 (M....