TMI Blog1996 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... this court for its opinion is : " Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in cancelling the order levying penalty under section 140A(3) ? " The material facts are as follows : The assessee, which is a firm, filed returns of income for the assessment years 1973-74 and 1974-75 on August 14, 1973, and September 23, 1974, respectively. For the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and relying on documents produced by it, cancelled the order of penalty. The Tribunal, however, allowed the request of the Department to refer the aforementioned question of law to this court for its opinion. Section 140A(1) of the Income-tax Act provides, inter alia, that where any tax is payable on the basis of any return required to be furnished under section 139 or section 148, after taking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticulars of such income, he may impose penalty on him. From a bare reading of section 271, it is manifest that even where the conditions as envisaged therein are satisfied, the Assessing Officer has discretion in the matter. The word "may" leaves no room for doubt that imposition of penalty is discretionary. It appears from the order of the Tribunal that in coming to a favourable conclusion it r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same discretion. Once this jurisdiction is conceded to the Tribunal, the rest of the dispute is concluded by finding of fact. In this proceeding it is not open to this court to either go behind the finding of fact or to see the adequacy of the material on which the finding is based. Consequently, we do not find any error in the order of the Tribunal. In the result, the question is answered in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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