2003 (3) TMI 34 - HC - Income Tax

Penalty under section 273(2)(b) non furnishing of estimate of the advance tax payable - levy of penalty under section 273(2)(b) is a matter of discretion. The discretion available to the Assessing Officer was equally available to the appellate authorities - Tribunal was right in law and had valid materials in cancelling the penalty levied under section 273(2)(b) of the Income-tax Act, 1961

Summary

The High Court of Madras considered a case involving a Hindu undivided family for the assessment year 1982-83. The Tribunal canceled the penalty imposed under section 273(2)(b) of the Income-tax Act, 1961, due to the assessee's participation in an amnesty scheme. The court upheld the Tribunal's decision, stating that the discretion exercised in favor of the assessee was valid. The reference was answered in favor of the assessee.