1979 (2) TMI 146 - AT - Income Tax

Summary

The ITAT Madras-D upheld the AAC's decision to cancel the penalty imposed by the ITO for concealment of income in the assessment year 1972-73. The Explanation to section 271(1)(c) of the IT Act was deemed of no practical use in this case as there was no evidence of fraud or wilful neglect by the assessee. The tribunal emphasized the distinction between assessment and penalty proceedings, stating that penalty cannot simply follow assessment without additional evidence. The departmental appeal was dismissed.