1980 (7) TMI 3

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....Income-tax Appellate Tribunal, B-Bench, Patna, to state a case and refer the following question of law for the opinion of the court : " Whether, on the facts and in the circumstances of this case, the cancellation of the penalty of Rs. 27,700 (Rupees twenty-seven thousand seven hundred) was legal and proper? " For the assessment year 1966-67, the assessee, a limited company, filed a return s....

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.... an order dated October 10, 1972, allowed the appeal and set aside the order imposing penalty. Thereafter, the present reference was called for at the instance of the Department. Learned counsel appearing on behalf of the Department has stated that in view of the fact that the Explanation to s. 271(1)(c) of the Act was attracted, the Tribunal has erred in relying on the decisions reported in CI....

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....as in the nature of income. The Explanation to clause (c) of sub-s. (1) of s. 271 of the Act reads as follows: " Where the total income returned by any person is less than eighty per cent. of the total income (hereinafter in this Explanation referred to as the correct income) as assessed under section 143, or section 144, or section 147 (reduced by the expenditure incurred bona fide by him f....