CIT Vs. KAMLA JAIN

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Delhi has referred the following question of law under section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion to this Court: '1. Whether on the facts and in the circumstances of the case, there was any material on record to sustain the findings of the Income Tax Appellate Tribunal in deleting the penalties under section 271(1)(c) in respect of the assessment years 1978 -79 and 1981 -82 to 1986 -87 and also penalties under sections 271(1)(a) and 273(2)(b) for the assessment year 1986 -87 ?'

(2.) BRIEFLY stated the facts giving rise to the present reference are as follows: The reference relates to the assessment years 1978 -79,1981 -82 to 1986 -87. The present reference arises out of the penalties imposed under section 271(1)(c) for all these years; while the penalty for late filing of the returns, i.e., under section 271(1)(a) of the Act and under section 273(2)(b) of the Act was levied for the assessment year 1986 -87 only.

(3.) PENALTY proceedings were initiated by the Income Tax Officer and ultimately penalty was levied. The Tribunal has set aside the penalty proceedings on the finding that there was no concealment of the particulars of the income by the assessee. The Tribunal found that the Explanation 3 to section 271(1)(c) of the Act is not applicable as the satisfaction of the assessing officer that the assessee had taxable income in earlier years, has not been recorded by the assessing officer.