2002 (8) TMI 13

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..... 61, has been filed seeking opinion of this court on the following questions: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is legally justified in cancelling the penalty under section 271(1)(c) even after giving clear finding that the assessee made a punishable default under section 271(1)(c)? 2. Whether, the Income-tax Appellate Tribunal is j .....

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..... ontended by Mr. Sandeep Bhandawat, learned counsel for the Revenue, that there cannot be any estoppel against the statute. It is submitted that even in the case of admission by the assessee, the question of cancellation of penalty is a question of law. Learned counsel has placed reliance on a Division Bench judgment of this court in Rasoolji Buxji v. CIT [1986] 158 ITR 768. Learned counsel has als .....

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..... d assurance that no penalty would be levied, though the entire amount did not relate to the assessment year in question is a finding of fact. Learned counsel has also relied on a judgment of this court in CIT v. H.M. Lalwani [2002] 258 ITR 276 to which one of us was a party (Mr. N. N. Mathur J.), wherein it is held that penalty under section 140A(3) gives discretion to the Assessing Authority to i .....

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