1974 (5) TMI 6 - HC - Income Tax

Summary

The High Court of Allahabad rejected the penalty imposed on an assessee for not maintaining proper records, stating that lack of proper verification does not constitute fraud or gross neglect. The burden of proof was on the assessee, and the Tribunal correctly applied the Explanation to section 271(1)(c) of the Income-tax Act 1961. The penalty order was cancelled, and the department's appeal was dismissed.