R.K.AGRAWAL,J. - (1.) THE Income Tax Appellate Tribunal, Delhi, has referred the following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court: *Whether, on the facts and in the circumstances of this case, the Tribunal was, in law, justified in holding that no penalty under section 271(1)(c) of the Income Tax Act, 1961 was leviable in the present case ?'
(2.) THE reference relates to the assessment years 1975 -76, 1976 -77 in respect of proceedings arising out of penalty imposed under section 271(1)(c) of the Act. Briefly stated the facts giving rise to the present reference are as follows: In respect of the assessment year 1975 -76, the assessing authority had made an addition of Rs. 2,500 as income from iron business and of Rs. 7,500 as income from pawning business. The addition of Rs. 2,500 on account of income from iron business was ultimately deleted by the Tribunal while the addition on account of pawning business had been sustained.
(3.) FOR the assessment year 1976 -77, the assessing officer had made an addition of Rs. 5,500 on account of unexplained household expenses and of Rs. 35,000 on account of investment in business. The addition of Rs. 5,500 has been upheld by the Tribunal while the addition on account of investment in pawning business was upheld at Rs. 14,030 only. On the basis of these additions, penalty amounting to Rs. 12,500 and Rs. 6,350 for the assessment years 1975 -76 and 1976 -77 respectively have been imposed by the assessing officer under section 271(1)(c) of the Act.;