1988 (11) TMI 46

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..... On the direction issued by this court, the Income-tax Appellate Tribunal, Chandigarh, has referred the following question for opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that no penalty under section 271(1)(c) is exigible thus cancelling the penalty imposed upon the assessee by the Inspecting Assistant Commissioner of Income-tax ? .....

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..... , vide order dated March 18, 1976, it restored the addition on account of commission and dismissed the assessee's appeal in respect of the drafts. In the penalty proceedings taken under section 271(1)(c) of the Income-tax Act, 1961 (for short "the Act"), it was brought to the notice of the Inspecting Assistant Commissioner that Anand Sales Corporation was separate firm and had been allowed regist .....

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..... otal sum of Rs. 29,000 did not relate to the assessee and related to Roshan Lal for his dalali business, they were not entered in the books of account. On a consideration of the matter, the Inspecting Assistant Commissioner did not accept the explanation and the evidence produced by the assessee but, on appeal, the Tribunal accepted the evidence and the explanation regarding both the additions an .....

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