1986 (7) TMI 65 - HC - Income Tax

Summary

The High Court of Allahabad ruled that the Income-tax Appellate Tribunal was justified in canceling the penalty imposed by the Inspecting Assistant Commissioner after April 1, 1971. The Tribunal's decision was based on a previous case where it was held that the authority imposing the penalty must have jurisdiction at the time of the final order. Since the penalty in this case was imposed after April 1, 1971, when the Inspecting Assistant Commissioner lost jurisdiction, the Tribunal's decision was upheld. The court ruled in favor of the assessee and awarded costs of Rs. 250.