1999 (2) TMI 15 - SC - Income Tax

Whether when the AO as well as the CIT(A) had given a categorical finding that the assessee had acted in conscious disregard of its statutory obligation with a view to reduce the quantum of its legitimate and proper advance tax liability, the Tribunal was right in law and on fact in holding that this was not a fit case for levy of penalty under s. 273(2)(a) - held, yes

Summary

The Supreme Court upheld the Tribunal's decision that assesses acted on an honest belief and were not liable for penalty under section 273(2)(a) of the IT Act for reducing advance tax liability. The High Court affirmed this view, and the appeal was dismissed.