1971 (1) TMI 18 - SC - Income Tax

When assessments have been made after 1st April, 1962, penalty can be imposed under Income-tax Act, 1961 in respect of assessment years ending prior to the commencement of Income-tax Act, 1961 - Tribunal has a discretion to say that no penalty could be levied at all, only in a case where there is no default or there is a reasonable cause for the default to which section 271(1)(a) refers - Revenue s appeal partly allowed

Summary

The Supreme Court judgment in 1971 (1) TMI 18 stated that the Tribunal has discretion under section 271(1)(a) of the Income-tax Act to decide on levying penalties based on default or reasonable cause. The Court allowed the appeals in part, with no costs awarded.