Law:

Section:

Section 256 of the Income-tax Act, 196l - Reference - Question of fact - Whether any question of law arose from Tribunal's order holding that not adding back amount of loss arising to assessee in speculative transactions to commercial profits disclosed in its books for purpose of assessment tantamounted to concealment of income or furnishing of inaccurate particulars of income within meaning of section 271(1)(c) - Held, no - Whether where Tribunal in its order had raised presumption of concealment, under Explanation to section 271(1)(c) but no notice under section t 271(1)(c) read with Explanation thereto was given to assessee, though notice under section 271(1)(c) had been given, any question of law arose from Tribunal's order - Held, no - Whether question as to whether assessee had failed to raise probabilities in its favour so as to repeal charge under section 271(1)(c) was a question of fact -Held, yes - Whether no question of law could be said to have arisen merely because IAC held assessee guilty of charge of not discharging onus cast under Explanation to section 271(1)(c) whereas ITO had categorically stated that charge against assessee was of concealment of income - Held, yes - Whether finding that error was one which borders on verge of wilful negligence or inadvertance, is a finding of fact and no question of law arises therefrom - Held, yes Facts The assessee-firm had filed its return of income for the assessment year 1966-67 showing a total taxable income of Rs. 50,720.59. During the assessment proceedings the ITO made certain queries and directed the assessee to disclose the details and reasons on which it claimed deduction of certain loss out of its income. The assessee then filed a revised return showing a total income of Rs. 1,63,370.59. The difference in the original and revised returns, it was stated, arose on account of the exclusion of certain debit entries on account of speculation loss and also on account of right adjustment of provision for bonus payable for the relevant year. On 20-1-1971, the ITO made a reference under section 274 to the IAC, inter alia, stating that as the assessee did not disclose truly and materially all the facts in…

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