1991 (10) TMI 15 - HC - Income Tax

Summary

Issues:
1. Whether a common question of law arises in three income-tax applications under section 256(2) of the Income-tax Act, 1961.
2. Whether penalty under section 271(1)(c) can be levied when the assessment is made on an agreed basis.
3. Whether the High Court can reframe a question in a reference application under section 256(2) of the Income-tax Act, 1961.

Analysis:
1. The High Court considered three income-tax applications under section 256(2) of the Income-tax Act, 1961, seeking a direction to the income-tax Appellate Tribunal to refer a common question of law for its opinion. The applications related to different assessment years but arose from common facts, leading the Court to dispose of them by a common order.
2. The main issue revolved around whether penalty under section 271(1)(c) could be levied when the assessment was made on an agreed basis. The Court noted that the finding by the Appellate Assistant Commissioner and affirmed by the Tribunal indicated no conscious concealment, fraud, or neglect by the assessee, leading to the conclusion that no question of law arose. The Court cited precedent to emphasize that it cannot disturb findings of fact unless expressly challenged in the application.
3. The Court delved into the scope of reframing a question in a reference application under section 256(2) of the Income-tax Act, 1961. It highlighted that the power to reframe a question is limited to amplifying or clarifying the existing question and cannot introduce a new question of law not raised in the initial application. The Court emphasized the advisory nature of its jurisdiction under section 256 and dismissed the applications as no question of law arose based on the facts found by the Tribunal.
4. Ultimately, the Court dismissed all three applications with costs, emphasizing that no question of law merited consideration based on the facts and findings presented in the case.