Law: Income Tax Act, 1961

Section: 256(2)

(a) Income-tax---Penalty---Reference to High Court---Question of law---Imposition of penalty for concealment of income by Assessing Officer confirmed by income-tax Appellate Tribunal---Questions set out before Tribunal for reference to High Court---Mere questions of fact and not questions of law on which Tribunal could not be called upon by High Court to submit the statement of the case to the High Court. (b) Income-tax--- ----Penalty---Concealment---Action of accountant by manipulation in the books of accounts was aimed at benefiting the assessee and not himself--¬Question whether Tribunal was justified in not cancelling the penalty, was essentially a question of fact and did not give rise to any question of law in circumstances. (c) Income-tax--- ----Reference---Essentials---Practice and procedure---Held, in order that the Tribunal may be directed to refer a certain question, it was necessary that the same must have been raised in some forum or the other and the Tribunal should have been called, upon to decide the question in exercise of its appellate jurisdiction. (d) Income-tax-- ----Appeal before Income-tax Appellate Tribunal-- -Scope ---Tribunal, while dealing with the appeal, in the absence of any cross-appeal or objection, cannot give a finding adverse to the appellant which would make his position worse than it was under the orders appealed against. (e) Income-tax--- ----Appeal---Penalty---Income-tax Appellate Tribunal, in appeal had no power to enhance penalty if no cross-appeal or objection against assessee had been moved. (f) Words and phrases--- ---- Expression "Whether on the facts and circumstances of the case" used in the questions proposed to be referred to High Court for answer, means nothing more than the facts and circumstances found by the Tribunal and cannot be construed to convey the facts and circumstances that may be found by the High Court on reappraisal of evidence. Hukumchand Mills Ltd. v. C.I.T. (1967) 63 ITR 232 (SC) and Karnani Properties Ltd. v. C.I.T. (1971) 82 ITR 547 (SC) ref. JUDGMENT R.K. GULATI, J.---These are two cross-applications under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), one…

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