ADDITIONAL COMMISSIONER OF INCOME-TAX Vs. MOHD SHAFI MOHD NABI

JUDGEMENT

(1.) Under Section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Allahabad Bench, has stated the following questions :

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in cancelling the penalty of Rs. 9,000 imposed by the Inspecting Assistant Commissioner under the Explanation to Section 271(1)(c) of the Income-tax Act, 1961 ?"

(3.) So far as the position obtaining under Section 271(1)(c) read with the Explanation then in force is concerned there can be no quarrel. It is authoritatively set out by the Supreme/Court in CIT v. Mussadilal Ram Bharose [1987] 165 ITR 14. On a perusal of the judgment of the Tribunal, however, we are satisfied that the approach adopted by it is in no way contrary to the principle of the said judgment. As a matter of fact, the Tribunal did not go by the rule of burden of proof at all. It dealt with the grounds given by the Inspecting Assistant Commissioner for imposing the penalty separately and specifically and negatived each of them.