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TMI Blog2002 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ng questions. In compliance with the direction of this court, the Tribunal has referred the following questions for our opinion: "Whether, on the facts and circumstances of the case and in law, the Tribunal was justified in cancelling the penalty levied under section 271(1)(c)? Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication relates to the assessment year 1988-89. The assessment year A was completed on December 28, 1988, under section 143(3) of the Income-tax Act and a total income was assessed at Rs. 12,29,580. The assessee in the original return filed on June 30, 1988, declared total income of Rs. 10,09,950 but in the revised return filed on December 27, 1988, he declared total income at nil as there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's conduct is further established from the fact that it filed an appeal against the assessment order though it was later not pressed due to there being no tax effect allowed. From the foregoing discussion it follows that such a deduction could be an arguable, controversial or a debatable question. In such a situation the claim could not be said to be false. If this were not so, it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, not right. What is more, since the assessee had paid tax amounting to Rs. 6,90,000 a refund of Rs. 3,481 became payable to it as a result of the final assessment. There is another fact which also required to be noticed, namely, as against the deduction of Rs. 6,73,298, claimed by the assessee on the basis of the original return the total deduction allowed as a result of the final assessment wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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