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Section 256, read with section 140A, of the Income-tax Act, 1961 - Reference to High Court - Question of fact - Assessment year 1984-85 - Tribunal held on appreciation of entire facts that assessee was not prevented by reasonable cause from making payment of tax under section 140 A - Whether Tribunal's Finding was one of fact and no question of law arose from it - Held, yes FACTS For the assessment year 1984-85, the assessee paid only part of the tax due along with the return of income. The ITO, therefore, issued show-cause notice requiring the petitioner to show cause why penalty under section 140A(3) should not be imposed. The assessee pleaded that the delay in payment of the tax was due to non availability of funds but the ITO imposed a penalty. On appeal, the Commissioner (Appeals) confirmed the order of the ITO. On further appeal, the Tribunal also upheld the decision of the ITO. The difficulty for funds arose, according to the Tribunal, because the assessee had diverted the available funds to sister concerns. The Tribunal also found that the assessee had utilized the available funds for construction of theatre and hotels. It was because of these, according to the Tribunal, that the assessee found shortage of funds for paying income-tax. The Tribunal held that the income-tax liability arose as and when the income was earned and the assessee who had a profit of more than Rs. 60 lakhs ought to have made provision for payment of tax at the end of the year. The assessee's application under section 256(1) was dismissed by the Tribunal holding that the question whether the assessee had sufficient funds or whether there was reasonable cause for not paying the tax was a question of fact and, therefore, no question of law arose. On application under section 256(2): HELD The question whether in a particular case the non-payment of tax arose out of genuine difficulties beyond the control of the assessee is purely a question of fact to be decided by the authority. In the instant case, the Tribunal did not base its findings on irrelevant considerations. Extraneous considerations had not been taken into account by the Tribunal. The Tribunal entered its findings on…

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