2002 (8) TMI 17 - HC - Income Tax

Penalty under section 271(1)(c) - Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in cancelling the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 ? - we find that the assessee had given a plausible and bona fide explanation for its having failed to file the return of income and, that the said finding of fact does not call for any interference.

Summary

The High Court of Rajasthan rejected a reference application by the Revenue seeking opinion on the cancellation of a penalty imposed under section 271(1)(c) of the Income-tax Act, 1961. The Tribunal had cancelled the penalty after finding the explanation given by the assessee to be bona fide and genuine. The High Court concluded that no referable question arose from the Tribunal's order and rejected the reference application.