AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
1974 (5) TMI 9
X X X X Extracts X X X X
X X X X Extracts X X X X
....nch) has stated the case and has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal correctly applied the Explanation to section 271(1)(c) of the Income-tax Act, 1961, and was right in law in cancelling the penalty order ? " The assessee is a registered firm carrying on busines....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0 on the assessee. The assessee thereupon filed an appeal before the Tribunal and contended that it had filed its return correctly and honestly. It kept regular books of account including cash book, ledger, journal, excise registers with complete quantitative stock and excise register which was periodically checked by the excise department officers. The only defect for which its books were not acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....maintained honestly and it honestly believing that maintenance of such books was sufficient for true ascertainment and estimation of its profits, filed its return on their basis, it could hardly be said that the assessee had been grossly or wilfully negligent in filing its return. In substance the finding of the Income-tax Appellate Tribunal is that considering the circumstances of the case the as....