1981 (2) TMI 44 - HC - Income Tax

Summary

Issues involved: Interpretation of Explanation to s. 271(1)(c) of the I.T. Act, 1961 regarding imposition of penalty u/s. 271(1)(c).

Judgment Summary:

The High Court of Calcutta considered a reference u/s. 256(1) of the I.T. Act, 1961, regarding the imposition of penalty u/s. 271(1)(c). The Tribunal held that no penalty could be imposed as there was no concealment of income or furnishing of inaccurate particulars. The Tribunal found that the cash deposits in question were deleted from the assessee's total income by the AAC, and there were differing opinions on the matter. Additionally, the Tribunal noted that the only other items affecting the total income were expenses disallowed in assessment and an estimated income not taxable under the Indo-Pakistan Avoidance Agreement. The High Court upheld the Tribunal's decision, stating that the findings of facts were not challenged and, therefore, no penalty u/s. 271(1)(c) could be imposed based on the circumstances of the case. The Court did not delve into the interpretation of the law but referred to a previous case for similar observations. The judgment was in favor of the assessee, and each party was directed to bear its own costs.

SABYASACHI MUKHARJI J.: The Tribunal's decision to not impose a penalty u/s. 271(1)(c) was upheld by the High Court based on the facts and circumstances of the case, where no concealment or inaccuracies were found, and differing opinions existed regarding the cash deposits in question. The Court did not provide an interpretation of the law but relied on established findings and previous case observations.

SUDHINDRA MOHAN GUHA J.: The second Judge concurred with the decision of the High Court to uphold the Tribunal's ruling that no penalty u/s. 271(1)(c) could be imposed, as there was no evidence of concealment or inaccuracies, and the facts of the case supported the Tribunal's findings.