1974 (5) TMI 9

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal correctly applied the Explanation to section 271(1)(c) of the Income-tax Act, 1961, and was right in law in cancelling the penalty order ? " The assessee is a registered firm carrying on business as a country liquor contractor. The assessment year in question is 1964-6 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l and contended that it had filed its return correctly and honestly. It kept regular books of account including cash book, ledger, journal, excise registers with complete quantitative stock and excise register which was periodically checked by the excise department officers. The only defect for which its books were not accepted was that cash sales made by the assessee, in loose bottles, were not v .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... was sufficient for true ascertainment and estimation of its profits, filed its return on their basis, it could hardly be said that the assessee had been grossly or wilfully negligent in filing its return. In substance the finding of the Income-tax Appellate Tribunal is that considering the circumstances of the case the assessee has made out a case that it was neither grossly nor wilfully negligen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X