1987 (1) TMI 120 - AT - Income Tax

Summary

The appeal was against a penalty imposed under s. 271(1)(c) of the IT Act, 1961. The assessee, a foodgrains firm, surrendered an amount under Part III with the assurance of no penalty, but it was added as income by the ITO. The ITAT held that no penalty was justified as the explanation was not false and the assessee disclosed all facts. The penalty was cancelled, and the appeal was allowed. (Case: Appellate Tribunal ITAT BANGALORE, Citation: 1987 (1) TMI 120)