1971 (3) TMI 35

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..... ax Appellate Tribunal: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in cancelling the penalty of Rs. 8,732 imposed on the assessee?" The assessee is a registered firm. The relevant assessment year is 1958-59. On April 23, 1962, the assessee filed a voluntary return of its income of the previous year. The Income-tax Officer observed that the return should ha .....

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..... view that by virtue, of section 297(2)(g) of the Act of 1961 the provisions of section 271(1) are attracted when a default is committed in complying with a notice under section 22(2) of the Act of 1922. It was held that : "Both sections 271(1) and 297(2)(g) have to be read together and in harmony and so read the only conclusion possible is that for the imposition of a penalty in respect of any .....

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..... committed in the course of proceedings under the Act of 1922. In our opinion this contention does not remain open to the assessee after the decision of the Supreme Court in the case of Jain Brothers. Learned counsel for the assessee then contends that if a penalty can be levied at all it can be computed at the rate of two per cent. of the tax only from April, 1962, from which date the Act of 1961 .....

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