COMMISSIONER OF INCOME TAX Vs. P NATARAJAN

JUDGEMENT

(1.) THE assessment year is 1981 -82.

(2.) THE question referred to us at the instance of the Revenue is 'whether, on the facts and in the circumstances of the case, the Tribunal was right in cancelling the penalty levied under Section 271(1)(c) of the Income -tax Act, 1961, for the assessment year 1981 -82 ?'

(3.) THE premises of the assessee were searched on August 1, 1985, after which he filed returns for the years 1978 -79 to 1986 -87. For the assessment year 1983 -84, penalty was levied by the Assessing Officer, which was set aside on appeal. No reference was sought from that order of the Tribunal. The proceedings initiated to levy penalty were after ah assessment was made for that year on the basis of an estimate made by the officer without assigning any reasons for not relying on the figures furnished in the returns filed by the assessee.