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TMI Blog2004 (12) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... question merely because it is raised and referred and in an appropriate case, it may decline to answer a question of fact or even a question of law which is purely academic – Thus, we decline to answer the question referred by the Tribunal because it is not a question of law. - - - - - Dated:- 2-12-2004 - Judge(s) : G. S. SINGHVI., TAPAN SEN. JUDGMENT The judgment of the court was delivered by G.S. Singhvi J.- The Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the cases, the Income-tax Appellate Tribunal was legally right in confirming the cancellation of penalty orders p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer was upheld by the Appellate Assistant Commissioner and also by the Tribunal. Thereafter, the assessment of the assessee was reopened and the amounts of Rs. 54,900 and Rs. 47,780 were added to the income of the assessee. The Assessing Officer also issued penalty notices to the assessee under section 271(1)(c) of the Income-tax Act, 1961 (for short "the Act"). In the reply filed on behalf of the assessee, it was claimed that M/s. Gupta Rice and General Mills was an independent entity and its income was not liable to be added to the income of the assessee. The allegation of evasion of tax was also denied. The Assessing Officer did not agree with the assessee and imposed penalties amounting to Rs. 65,000 and Rs. 58,000 on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 22, 1989, shows that while making the reference, the Tribunal did not feel convinced that a pure question of law arises for determination by the High Court. This is clearly borne out from paragraph 11 of the impugned order, the relevant extract of which is reproduced below: "In the light of the facts contained in the preceding paragraphs, we are satisfied that a referable mixed question of fact and law arises from the consolidated order of the Tribunal." While dealing with the issue relating to registration of M/s. Gupta Rice and General Mills and penalty imposed by the Assessing Officer, the Tribunal observed as under: "In this behalf, it needs to be noted that the original firm, Ganga Ram Jati Ram, was only a firm of commission a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight partners of the new firm on April 1, 1971, as was alleged by the new firm, Gupta Rice and General Mills. But even if that is true, the fact remains that Gupta Rice and General Mills had come into existence as early as January 1, 1971, and between that firm and the assessee-firm there was no interlacing or interlocking of the firms. The reason for describing the new firm, Gupta Rice and General Mills, as branch of the assessee-firm to the sales tax authorities has been explained in the affidavit of Shri Des Raj dated December 17, 1983, and appears to be quite plausible. At best, all that can be said is that all the partners of both the firms remained common till March 15, 1972. It is not the case of the Department that subsequently al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee in claiming two separate assessments may not be correct in law, it could not be said to be concealment straightaway because there was nothing concealed. Both the incomes were declared and what the assessee wanted was that they should be assessed separately. Probably, the assessee had some justification for that claim may be that it was not found in order. But this by itself would not be sufficient to levy the penalty." In our opinion, the finding recorded by the Tribunal that the assessee had not concealed the income or made misstatement about its income is based on a correct appreciation of evidence and no question of law arises from the order passed by it which requires consideration by this court. Therefore, by applying the rati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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