9911796707
TMI Blog1976 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961, referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in cancelling the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 ?" The facts necessary for the decision of this reference may be shortly stated. The assessee is a registered firm and carried on the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Inspecting Assistant Commissioner. The Inspecting Assistant Commissioner issued a show-cause notice to the assessee in response to which it was stated on behalf of the assessee, that the amounts of cash credits were treated as the assessee's income merely for want of satisfactory evidence, and there was no evidence on the record to show that these cash credits were really concealed income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attracted. The penalty imposed by the Inspecting Assistant Commissioner was accordingly set aside. Counsel for the revenue has raised only one contention that inasmuch as the return of income of the assessee was less than 80% of the assessed income, the Explanation to section, 271 was attracted, and the Tribunal erred in ignoring the Explanation while cancelling the penalty. The argument is mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been disallowed as a deduction by the Income-tax Officer. Thus, before the resort to the Explanation can be had, data by way of the expenditure incurred by the assessee for earning the income has to be available on the record before the Explanation can be applied to any particular case. Such data is not available on the record of this reference nor has the Inspecting Assistant Commissioner gone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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