1975 (7) TMI 11

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....llate Tribunal, Gauhati Bench, under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as " the Act " : " Whether, on the facts and in the circumstances of the case and on proper construction of the Explanation to section 271(1)(c) of the Income-tax Act, 1961, the Tribunal was correct and justified in cancelling the penalty order ? " The facts of the case, as appear from th....

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....was shown and so he held that the assessee had concealed profit to the tune of Rs. 19,154 in the paddy account, and so he added this amount. For this amount of Rs. 19,154, penalty proceedings under section 271(1)(c) of the Act were initiated and the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner as required under the law. The Inspecting Assistant Commissioner there....

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....be imposed. The entirety of circumstances must reasonably point to the conclusion that the assessee had consciously concealed the particulars of his income ...... Here also the appellant has asserted that one of the partners was dead and there was difference between the munim and the assessee and so the mistake could not be detected. The explanation appears to be believable. We hold that the appel....