1991 (1) TMI 92 - HC - Income Tax

Summary

The High Court of Allahabad ruled in favor of the assessee, stating that the Tribunal was legally correct in canceling the penalty imposed under section 271(1)(c) of the Income-tax Act. The Tribunal found that differences between the assessed and returned income did not warrant a penalty, including the addition of Rs. 7,300 as profit under section 41(2). The Explanation to section 271(1)(c) did not support the Revenue's case. The penalty of Rs. 15,000 imposed by the Inspecting Assistant Commissioner was deleted by the Tribunal.