Law:

Section:

Section 256 of the income-tax act, 1961-Reference-Tribunal's finding of fact-Purchase price of jute shown by assessee at more than market price-ITO imposed penalty holding that there was concealment of income by inflation of purchase price-Tribunal upheld additions to assessee's income but deleted penalty-Tribunal's finding that no concealment was established, was not challenged as perverse or not based on evidence-Whether tribunal's action in deleting penalty justified-Held, on facts, yes Facts The assessee-company purchased a substantial quantity of jute at a rate higher than the average market price, and did not produce bills and vouchers but only a register in support of its claim. This related to the assessment year 1948-49. The ITO held that the assessee had concealed its income by inflating the purchase price. He, therefore, made additions and imposed penalty under section 28(1)(c ) of the 1922 Act. The AAC upheld the penalty. On further appeal, the Tribunal held that merely because the average price for purchases of jute shown by the assessee was more than that shown by some other assessee, it would not lead to a conclusion that the assessee had in fact shown a higher value. The Tribunal, accordingly, set aside the penalty and observed that although the addition could be justified, the assessee could not be said to have concealed the particulars of its income or deliberately furnished inaccurate particulars thereof. The Tribunal, therefore, concluded that as no concealment was established, the penalty was not justified. On reference : Held It appeared that there was evidence before the Tribunal and the Tribunal, after consideration of all the aspects of the matter, had come to the conclusion which had not been challenged as perverse or based on no material. Further, the Tribunal's findings could not be held to be perverse or based on no material. Thus, the Tribunal was justified in deleting the impugned penalty. Judgment Sabyasachi Mukharji J.-In this reference under section 66(2) of the Indian Income-tax Act, 1922, as directed by this court, the following question has been referred to us : "In the facts and circumstances of the case, was the Tribunal…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492