2007 (4) TMI 232

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....Devadhar, J - 1. This Application filed by the Revenue under section 256(2) of the Income Tax Act, 1961 was admitted on 15^th April, 1998 on the following questions of law . "1. Whether on the facts and in the circumstances of the case, the ITAT was justified in sustaining the order of the CIT(A) in cancelling the penalty levied by the Assessing Officer under Section 271(1)(c) of the Act ? 2....

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....on and Steel amounting to Rs. 2,91,625/- to the sister concern. As the assessee could not furnish complete availability of funds, the assessee filed return of income on 30.12.1985 by offering to tax said amount of Rs. 2,91,625/-. The Assessing Officer passed the assessment order accepting the return filed by the assessee and levied penalty under section 271(1)(c)of the Act, by invoking explanation....