ADDITIONAL COMMISSIONER OF INCOME-TAX Vs. IRSHAD ALI

JUDGEMENT

(1.) This reference has been made by the Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, on the direction of this court in terms of Section 256(2) of the Income-tax Act, 1961. The Tribunal has drawn up the statement of facts and has referred the following questions for the opinion of this court :

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in cancelling the penalty of Rs. 19,000 imposed by the Inspecting Assistant Commissioner under Section 271(1)(c) of the Income-tax Act, 1961 ?"

(3.) In appeal against the order of the Inspecting Assistant Commissioner, the Tribunal set aside the order imposing penalty by the Inspecting Assistant Commissioner as is evident from the order of the Tribunal dated September 19, 1973. In paragraph 2 of the order, the Tribunal expressed itself as below :