1988 (8) TMI 23

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.... a reference under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), at the instance of the Revenue, to answer the following question of law, viz. : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the penalty imposable under section 271(1)(a) of the Income-tax Act, 1961, in the case of the assessee-registered firm ca....

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.... affirmed the view of the Appellate Assistant Commissioner. Hence, this reference at the instance of the Revenue. There is no controversy that prior to April 1, 1976, the maximum penalty calculated at the rate of 2% of the assessed tax for every month during which the default continued, could not exceed 50% of the assessed tax. This was the upper limit for penalty prescribed at the time when th....