Urvashi Talkies vs Commissioner of Income Tax

By this application u/s 256(2) of the Income Tax Act, 1961, the assessee-applicant prays that the Income Tax Appellate Tribunal, New Delhi, be directed to state a case and to refer the following" questions stated to be of law and to arise out of its order dated November 30, 1995, passed in I. T. A. No. 7164/Del of 1990, for the assessment year 1985-86 for the opinion of this court.

"1. Whether the Appellate Tribunal was correct and legally justified to hold that the offer made conditionally only to buy peace constituted concealment exigible to penalty u/s 271(1)(c) of the Act ( Commissioner of Income Tax Vs. Punjab Tyres, ?

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961 Sohinder Singh and Bros. Vs. Commissioner of Income Tax, ?

Whether, on the facts and in the circumstances of the case, the assessee''s letter containing" conditional offer amounting to admission of concealment of an income of 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in upholding" the order of the Commissioner of Income Tax (Appeals) confirming the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961, in total disregard of the case law relied upon before the Appellate Tribunal ?

Whether there was material with the Appellate Tribunal to hold that the sum of Rs. 1,00,000 added in the assessment of the assessee-firm constituted the concealed income of the assessee-firm Pratap Singh Ravindrajeet Singh Vs. Commissioner of Income Tax, ?"

We have heard Sri Rajesh Kumar, learned counsel for the applicant, and Sri Ashok Kumar, learned counsel for the respondent. On behalf of the respondent it is contended that the question whether an assessee concealed the particulars of his income is a question of fact and no question of law arises. The contention of learned counsel for the applicant, on the other hand, that the Tribunal''s findings are based on irrelevant evidence.

In our view, a question of law does arise out of the order of the Tribunal. We direct the Tribunal to state the case and to refer the following question for the opinion of this court :

"Whether the Tribunal''s finding that the assessee concealed the particulars of its Income Tax in relation to a sum of Rs. 1 lakh is based on any relevant evidence and is sustainable in law ?"

We, accordingly, direct the Tribunal to state the case and refer the aforesaid question for the opinion of this court.