2004 (6) TMI 646

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....J. 1. This ITR is on reference by the Income-tax Appellate Tribunal, Cochin Bench, under section 256(1) of the Income-tax Act. The questions referred are as follows: 1. Whether, on the facts and in the circumstances of the case, and in the light of Explanation 1 to section 271(1)(c), the Tribunal is right in law and fact, in cancelling the penalty? 2. Whether, on the facts and....

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....er section 271(1)(c) which actually represented the difference between the returned loss of Rs. 2,16,430 and the assessed income of Rs. 50,000. 2. The appeal filed was dismissed. The matter was taken before the Tribunal. The Tribunal noticed that though there was justification for rejecting the books of account and making the assessment on estimate basis in view of the defects in the accounts, ....

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....at it was not right on the part of the Tribunal to vacate the order of penalty. As rightly submitted by the learned counsel for the Revenue, the burden was on the assessee and he has not discharged the burden. Learned counsel for the assessee then submitted that the assessee should be given an opportunity to show that there is no basis for the imposition of penalty and for deriving the income of R....