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Issues involved:
The issue involves the imposition of penalty on the assessee for the assessment year 1971-72 under section 271(1)(c) of the Income-tax Act, 1961, based on the concealment of income or furnishing inaccurate particulars of income. Judgment Summary: The High Court of Delhi was presented with a question regarding the imposition of a penalty on the assessee for the assessment year 1971-72 under section 271(1)(c) of the Income-tax Act, 1961. The assessee, a partnership firm engaged in selling steel pipes and tubes, had filed its return declaring an income of Rs. 4,64,890, which was later revised by the authorities. The Income-tax Officer initiated penalty proceedings as the alleged concealed income exceeded Rs. 25,000. The Inspecting Assistant Commissioner held that the assessee had concealed income related to interest amounting to Rs. 61,181, leading to the imposition of a penalty. The Tribunal upheld the penalty, noting that the assessee had surreptitiously introduced amounts in its books as belonging to the firm or its partners. The High Court, after considering the facts, declined to answer the question referred, as the conclusions of the Tribunal were deemed factual and not raising any legal issues. The Tribunal observed that the assessee had claimed loans of over Rs. 1 crore from various sources, introducing them as deposits from hundiwalas and agriculturists. However, the alleged creditors did not come forward to claim the amounts, allowing the assessee to incorporate them in its books. The Tribunal highlighted the suspicious nature of these transactions and the subsequent surrender made by the assessee for previous assessment years. The Tribunal concluded that there was concealment of income or furnishing of inaccurate particulars, specifically related to the interest claim. Given the factual background and acceptance of the amounts by the assessee, the Tribunal's findings were considered factual with no legal questions arising. In conclusion, the High Court declined to answer the question referred, as the Tribunal's conclusions were based on factual determinations and did not give rise to any legal issues. The reference regarding the penalty imposition for the assessment year 1971-72 was returned unanswered.
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