Cit vs Smt. Asha S. Khurana
2007 Latest Caselaw 274 Bom

JUDGMENT

1. In all these income-tax applications, the question raised is, whether the Tribunal was justified in deleting penalty levied under Section 271(l)(c) of the Income Tax Act, 1961, by holding that the additions made in the assessments were under the amnesty scheme issued under the Finance Act, 1985 ?

2. As per the circular issued under the amnesty scheme, the benefit is not available where the premises of the assessee were searched by the tax authorities. In the present case, from the impugned order, it is seen that the search operations were carried out at the business premises of Hotel Woodlands of which the assessee is the proprietor.

3. In this view of the matter, the findings recorded by the Tribunal need consideration. Accordingly, all the applications are allowed on the following questions of law:

1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in sustaining the order passed by the Commissioner (Appeals) in cancelling the penalties levied by the assessing officer under Section 271(1)(c) of the Act for the assessment years 1980-81 to 1987-88 ?

2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the amnesty scheme is applicable to the facts of the case ?

4. The Tribunal is directed to forward the statement of case as expeditiously as possible. All the applications are disposed of with no order as to costs.