9911796707
TMI Blog1977 (8) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of law to this court, which according to him, arises out of the Tribunal's order dated February 27, 1976 : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in cancelling the penalty of Rs. 1,76,000 levied under section 271(1)(c) of the Income-tax Act, 1961 ? " The facts giving rise to this application are not disputed and are as under : The Commissioner of Income-tax, Jullundur, made an application under sub-section (1) of section 256 of the Act to the Tribunal requesting it to draw up a statement of the case and to refer to the High Court the aforesaid question of law in case of Commissioner of Income-tax v. Surinder Singh, arising out of the Tribunal's order dated February 27, 1976, passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 12, 1971, alleged to have been entered into by the assessee with the said company, the Income-tax Officer came to a finding that the same was a fabricated one. He also noticed that there were cuttings and overwriting in the stamp paper register of the stamp vendor. Opinion of the handwriting expert was also obtained which further confirmed the Income-tax Officer's suspicion that the entries in the said register had not been made in the ordinary course and that the alleged agreement shown to have been written on February 12, 1971, was not actually written on the said date but on a later date. The assessee's contentions were not accepted by the Income-tax Officer and accordingly it was held that the assessee had failed to establish that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he concealed income : vide his order dated May 30, 1975. On appeal, the Tribunal, vide its order dated February 27, 1976, cancelled the penalty of Rs. 1,76,000 imposed on the assessee by the Inspecting Assistant Commissioner. It is in these circumstances that the present application has been made to this court to direct the Tribunal to refer the aforesaid question of law to this court. Mr. D. N. Awasthy, the learned counsel for the revenue, has contended before us that the learned Tribunal has erred in holding that no question of law arose out of its order dated February 27, 1976. In support of his contention he has relied on the Explanation to section 271 (1)(c) of the Act and also on a Division Bench decision of this court in Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove that the concealment was deliberate or not and the true effect of the Explanation to section 271(1)(c) and, therefore, a question of law arose which should be referred to the High Court. Explanation to section 271(1)(c) is in the following terms : "Where the total income returned by any person is less than eighty per cent. of the total income (hereinafter in this Explanation referred to as 'the correct income') as assessed under section 143 or section 144 or section 147 (reduced by the expenditure incurred bona fide by him for the purpose of making or earning any income included in the total income but which has been disallowed as a deduction), such person shall, unless he proves that the failure to return the correct income did not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
