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Section 256 of the Income-tax Act, 1961 - Reference - General - Whether assessee is entitled to reiterate same question and ask Court to ask for statement of case on questions which were given up before Tribunal - Held, no Section 256, read with sections 37(1) and 147(b), of the Income-tax Act, 1961 - Reference - Question of fact - Assessee did not show in its return that an amount of Rs. 3,000 was paid by way of penalty - On this information being received by ITO he reopened assessment under section 147(b) - Tribunal held that reopening was justified and that assessee was not entitled to deduction of penalty - Whether a question of law arose from Tribunal's order - Held, no FACTS The assessee did not disclose in its return that the amount of Rs. 3,000 which, as discovered later, was paid by way of penalty. When this information became available to the ITO he initiated proceedings for reassessment under section 147(b). The Tribunal held that reassessment proceedings under section 147(b) were justified. The Tribunal also held that deduction of penalty was not an allowable deduction. On application under section 256(2) for the reference of the aforesaid two questions and certain other questions : HELD As regards the deduction of penalty of Rs. 3,000 the matter stands covered by the decision of the Supreme Court in Haji Aziz & Abdul Shakoor Bros. v. CIT [1961] 41 ITR 350. As regards initiation of proceedings under section 147(b) it could not be said that proceedings were without jurisdiction hence, no question of law arose from Tribunal's order. As regards other questions, the assessee was not entitled to reiterate the same questions and ask this Court to ask for statement of the case on the questions which were given up before the Tribunal. CASE REVIEW Haji Aziz & Abdul Shakoor Bros. v. CIT [1961] 41 ITR 350 (SC) followed and relied upon. CASES REFERRED TO Haji Aziz & Abdul Shakoor Bros. v. CIT [1961] 41 ITR 350 (SC) (para 2). JUDGMENT R.M. Sahai, J. - In this application filed under section 256(2) of the Income-tax Act, 1961 ('the Act') by the assessee as many as six questions have been raised. From a perusal of the orders of the Tribunal passed…

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