COMMISSIONER OF INCOME TAX Vs. K C PALANISWAMY

JUDGEMENT

(1.) THE above tax case appeals are directed against the common order of the Income-tax Appellate Tribunal in ita. Nos. 975 & 947/mds/1994, dated 12. 11. 2002.

(2.) 1. The Revenue is the appellant. The assessment years involved are 1989-90 and 1990-91. The case of the appellant is that the assessee was a member of the Tamilnadu Assembly/lok sabha during the previous assessment years. The assessee was found to have unexplained income and the same was assessed to tax and separate penalty proceedings were also initiated by the assessing officer amounting to Rs. 17 lakhs for A. Y. 1989-90 and Rs. 4. 5 lakhs for A. Y. 1990-91 2. 2. Aggrieved by the same, the assessee filed appeals before the Commissioner of Income-Tax (Appeals)against the order imposing penalty under Section 271 (1) (C) of the Income Tax act, 1961. The Commissioner of Income-Tax (Appeals), after an elaborate discussion, sustained certain additions made by the assessing officer, but cancelled the entire amount of penalty without sustaining even the penalty relatable to the quantum of addition sustained by him. The said findings of the commissioner of Income-Tax (Appeals), were upheld by the appellate Tribunal on the appeals filed by the Revenue.