1988 (8) TMI 23 - HC - Income Tax

Summary

The High Court of Rajasthan ruled that the penalty imposed on a registered firm under section 271(1)(a) of the Income-tax Act, 1961 cannot exceed 50% of the assessed tax. The court upheld the decision of the Income-tax Appellate Tribunal in reducing the penalty amount from Rs. 2,580 to Rs. 700 for the assessment year 1974-75. The reference was answered in favor of the assessee, with no costs.