TMI Blog1974 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (hereinafter referred to as " the Act ") at the instance of the revenue : " Whether the Tribunal was right in law in deleting the penalty by applying the principles of the Supreme Court decision in Commissioner of Income-tax v. Anwar Ali [1970] 76 ITR 696 (SC) to the levy of penalty in this case under section 271(1)(c) after its amendment by omission of the word "deliberately " in clause (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell-known decision of the Supreme Court in the case of Commissioner of Income-tax v. Anwar Ali [1970] 76 ITR 696 (SC). While it is true that the inclusion of the cash credits have been upheld by the Appellate Tribunal in the corresponding quantum of assessment on the ground that the assessee has failed to prove satisfactorily its claim that the amounts were genuine loans taken from the parties con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lost sight of the fact that with effect from April 1, 1964, an Explanation had been added to section 271(1)(c) of the Act wherein it has been provided that where the total income returned by any person is less than 80 per cent. of the total income as assessed under section 143, the assessee shall, unless he proves that the failure to return the correct income did not arise from any fraud or any g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in Commissioner of Income-tax v. Scindia Steam Navigation Co. Ltd. [1961] 42 ITR 589 (SC) and Commissioner of Wealth-tax v. Ramaraju Surgical Cotton Mills Ltd. [1967] 63 ITR 478 (SC). There is no doubt that unless the question raised arises out of the appellate order it is not one which is open to reference. We are, however, of the view that the matter is covered within the first thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e do not think the assessee's stand, that such a question cannot be canvassed before us because it never arose out of the appellate order, can be sustained. Our answer to the question referred to us shall, therefore, be that the Tribunal was not right in law in deleting the penalty by applying the principles of the Supreme Court decision in Anwar Ali's case [1970] 76 ITR 696 (SC). We make no ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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