1990 (11) TMI 130 - HC - Income Tax

Summary

The High Court of Allahabad ruled in favor of the assessee in a penalty case under section 271(1)(a) of the Income-tax Act, 1961. The Tribunal cancelled the penalties imposed due to the assessee's reasonable cause for delayed filing of returns, supported by a settlement agreement. The court agreed with the Tribunal's decision, emphasizing the assessee's bona fide belief as a valid reason. The judgment favored the assessee, with no costs awarded.