1980 (3) TMI 59

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..... l was justified in ordering the imposition of penalty on the assessee under section 271(1)(c) read with section 274 of the Income-tax Act, 1961,on the annual income of M/s. Hindusthan Trading Corporation on the return filed by Sm. Bhadra Mitra ? 2. If the answer to question No. 1 is in the affirmative, whether on the facts and in the circumstance of the case, the Tribunal was justified in confi .....

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..... earlier appeals that the aforesaid business belonged to him. In that view of the matter, the Tribunal upheld the inclusion of income from the said business. The Tribunal, however, remanded the question of inclusion of capital gains in the assessment of the assessee to the AAC for a fresh decision. In the penalty proceedings, the IAC to whom the penalty proceedings were referred, held that th .....

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..... he assessee.Therefore, in our opinion, the Tribunal was not justified in confirming the quantum of penalty which included the capital gains. In the premises, we answer question No. 2 in the negative and in favour of the assessee. The Tribunal will re-hear both the parties on the issue of inclusion of penalty relating to capital gains after the quantum appeal for the aforesaid assessment year .....

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