1972 (10) TMI 36

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....ference under section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, Lucknow, on the following question : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified legally in cancelling the order of penalty passed under section 271(1)(c) of the Income-tax Act, 1961 ? " The assessee is a registered fir....

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....r gross or wilful neglect on his part. In the instant case, the Income-tax Appellate Tribunal found that the enhancement in the assessee's income was made because the profit shown by the assessee was only 5 per cent. of the sales which was considered by the income-tax authorities to be rather low. On that ground the books were rejected and profit was assessed by applying a rate of 12 1/2% per cent....