Law: Income Tax Act, 1961

Section: 256,271

Income-tax---Reference---Penalty---Concealment of income---Finding that revised returns had been filed voluntarily and that there was no concealment of income---Tribunal justified in deleting penalty---No question of law arose--¬Indian Income Tax Act, 1961, Ss.256 & 271(1)(c). Held, dismissing the application for reference, that the conclusion of the Tribunal was one of appreciation of facts. The revised return was submitted voluntarily. No case of conscious concealment was visible. The Tribunal was justified in deleting the penalty and no question of law arose from its order. CIT v. Bhimji Bhanjee & Co. (1984) 146 ITR 145 (Bom.); CIT (Addl.) v. Jeewandas Gyanchand (1983) 144 ITR 881 (MP); Girdharilal Soni v. CIT (1989) 179 ITR 111 (Cal.) and Sir Shadilai Sugar and General Mills Ltd. v. CIT (1987) 168 ITR 705 (SC) ref. JUDGMENT A.R. TIWARI, J.---The applicant (Commissioner of Income-tax, Bhopal), has filed this application under section 256(2) of the Income Tax Act, 1961 (for short the "Act"), seeking a direction to the Tribunal to state the case and refer the proposed question of law as extracted below, on rejection of the application registered as R.A. No.126/Ind of 1992 for the assessment year 1985-86, on December 19, 1992, arising out of the order passed by the Tribunal on May 15, 1992, in ITA No.934/Ind of 1990, for our consideration and opinion. "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting penalty under section 271(1)(c) and holding that Explanation 1 to section 271(1) is not at all attracted?" The facts lie in a narrow compass. The assessee furnished the return for the assessment year 1985-86. on March 10 1986, declaring his income as Rs.13,850. The Income-tax Officer then issued a letter on July 16, 1986. to furnish details of the expenses claimed at Rs.36,023 on truck. The assessee then furnished a revised return on February 26, 1988, showing the income of Rs.49,880 and surrendered the expenses claimed earlier. The assessment was completed on January 16, 1989. Penalty proceedings under section 271(1)(c) of the Act were initiated. The assessee filed objections. After consideration of the…

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