1986 (9) TMI 40

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....to answer the following questions of law, namely: Assessment year 1966-67: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in cancelling the penalty of Rs. 25,000 levied by the Inspecting Assistant Commissioner under section 271(1)(c) read with section 274(2) of the Income-tax Act, 1961 ? " Assessment year 1967-68 : "Whether, on the facts and in ....

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....and 15% on estimated sale of furniture. This was done with the agreement of the assessee who accepted these assessments. Thereafter, penalty proceedings were initiated by referring the matter to the Inspecting Assistant Commissioner. The Inspecting Assistant Commissioner rejected the assessee's explanation that there was no concealment of income and held that the assessee was liable to imposition ....

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....ction under section 256(2) of the Act. It is as a result of the direction given by this court on the application made by the Revenue that the Tribunal has stated the case and referred the aforesaid questions for the decision of this court. Having heard both the sides, we are satisfied that the Tribunal has set aside the penalty imposed on the assessee for both these years without recording the ....

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....depends on consideration of the Explanation to section 271(1)(c) of the Act cannot be decided in the absence of these findings. Obviously, this was not done on account of the fact that all concerned including the Tribunal appear to have overlooked this statutory provision contained in the Explanation to section 271(1)(c) of the Act. In view of the above conclusions reached by this court, the ma....