TMI Blog1990 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue pursuant to the order of this court in Income-tax Reference No. 18 of 1968 dated January 13, 1971. The question referred to us reads as under : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the penalty order ?" The relevant assessment year is 1959-60. The facts leading to the making of this reference are as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellate Assistant Commissioner in appeal. The said addition was reduced by the Income-tax Appellate Tribunal to Rs. 52,000 only. On April 1, 1962, the Income-tax Act, 1961, came into force. Section 297(1) of the said Act provided that the Indian Income-tax Act, 1922, was thereby repealed. Section 297(2)(g) of the Income-tax Act, 1961, reads as under (2) Notwithstanding the repeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 271 ( 1 ) (c) of the Act. Against the said order, the assessee preferred an appeal before the Income-tax Appellate Tribunal. Two contentions were urged before the Income-tax Tribunal. Firstly, it was contended on behalf of the assessee that the Income-tax Act, 1961, could not be invoked for the purpose of levy of penalty in respect of an alleged default pertaining to the assessment year 1959- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The Income-tax Appellate Tribunal further held that, on merits, there was no case for the imposition of penalty as the Income-tax Officer had not brought home the guilt of concealment to the assessee. By the said order, the penalty imposed by the Inspecting Assistant Commissioner was cancelled. Thus, on merits, the Tribunal held that the Assessing Officer had failed to prove that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nourable Supreme Court. The Tribunal cancelled the imposition of penalty after recording a finding that the allegation of concealment of income was not proved. The Tribunal rightly recorded in para 8 of its judgment that merely because certain additions were made in the trading account by the Assessing Officer, it did not necessarily follow that the assessee had concealed its income. The above-r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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