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Issues Involved: Application u/s 256(2) of the Income-tax Act, 1961 for calling a statement of case from the Tribunal regarding cancellation of penalty u/s 271(1)(c) for concealment of income based on suppressed sale of liquor.
Summary: The respondent-firm, engaged in liquor business, had its penalty u/s 271(1)(c) cancelled by the Income-tax Appellate Tribunal. The Income-tax Officer had added Rs. 20 lakhs to the income, but the Tribunal sustained only Rs. 1 lakh addition. The Revenue contended that sustaining the Rs. 1 lakh addition justified the penalty, while the respondent argued it was an estimation, not concealment. The Tribunal found the explanation bona fide and cancelled the penalty. The High Court held that as there was no evidence of concealment, the Tribunal's decision to add Rs. 1 lakh was based on estimation, not concealment, and no question of law arose for reference. The application for reference was rejected. In conclusion, the High Court dismissed the reference application, emphasizing that the Tribunal's decision to add Rs. 1 lakh was based on estimation, not concealment of income, and no question of law arose for consideration.
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