TaxTMI 
TaxTMI 
1982 (2) TMI 10
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....n plantains, and had returned the total income of Rs. 33,215, was assessed on a total income of Rs. 99,600, after the ITO had rejected the book results. In appeal, the total income was reduced to Rs. 71,450 and as the returned income was less than 80 per cent. of the assessed income, the ITO initiated penalty proceedings in view of the Explanation to s. 271(1)(c) of the I.T. Act, 1961, as in force....
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....' wilful neglect ' or ' fraud ' on the part of the assessee ". On that view, the Tribunal allowed the appeal and set aside the order of penalty. Arising out of this order of the Tribunal, the following two questions have been referred to this court under s. 256(1) of the Act: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that even where the Explan....
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.... was not tenable ? " We had occasion to deal with this question when the reference arising out of Income-tax Appeal No. 2306 of 1970-71 was decided by us, being Income Tax Reference No. 152 of 1972 decided on 20th January, 1982 (CIT v. Devandas Perumal & Cu. [1983] 140 ITR 943). In that reference, we have endorsed the view of the Tribunal that if the accounts kept by the assessee were such as cou....