2010 (10) TMI 856

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..... rsh Kumar Goel, J:   1. Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh, arising out of its order dated 13.12.1994 in I.T.A. No.397/89 for the assessment year 1984-85:-   "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in quashing the penalty for the period from 25.2.1985 t .....

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..... hs. On further appeals, by the revenue as well as by the assessee, the Tribunal held that for the period from 1.11.1984 to 25.2.1985, for which relief was allowed by the CIT (A), penalty had not even been levied by the Assessing Officer. The Tribunal granted relief for the period from 25.2.1985 to 31.10.1985.   3. We have heard learned counsel for the parties.   4. Learned counsel for .....

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..... e, we find it appropriate to allow relief from 25.2.85 to 31.10.1985."   5. It is clear from the finding recorded by the Tribunal that breathing period was allowed to the assessee on account of riots and fire in November, 1984. The said event is a well known event. It cannot be disputed that under Section 140-A(3) of the Act, levy of penalty is not mandatory. There is no minimum penalty prov .....

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