1988 (4) TMI 43

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....-This reference under section 256(1)of the Incometax Act, 1961, at the instance of the Revenue, is to answer the following question of law, namely: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no charge was levied by the Incometax Officer for default under section 139(2) of the Income-tax Act, 1961, and in cancelling the penalty consequent....

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....ction of the two items as trading loss and treated them as loss from speculation. Consequently, additions were made and the assessee's taxable income was computed at Rs. 1,91,210. This was later reduced to Rs. 91,143. The Income-tax Officer issued a notice to the assessee to show cause why penalty should not be imposed on it under section 271(1)(a) of the Act. The assessee replied to the notice co....

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....rading loss were to be treated as trading losses or loss from speculation. It was the rejection of the assessee's contention in respect of these two items which has brought about the result of the assessee having taxable income instead of loss suffered for that year, as claimed by the assessee. It was, therefore, held that no penalty could be levied under section 271(1)(a) for default committed un....