Suhas Chandea Sen, J. - (1.) The Tribunal has forwarded the following questions of law to this court under Section 256(2) of the Income-tax Act, 1961 : Question in Matter No. 1865 of 1991 : "1. Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the assessee as on the date of tender of the high denomination notes worth Rs. 81,000 had always a cash balance far in excess of Rs. 81,000 is perverse being contrary to the evidence on record ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the addition of Rs. 81,000 made under Section 69A of the Income-tax Act, 1961 ?" Question in Matter No. 1863 of 1991 : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in cancelling the penalty under Section 271(1)(c) of the Income-tax Act, 1961 ?"
(2.) The assessment year involved is 1979-80, for which the relevant period of accounting is the period ending on June 30, 1978.
(3.) The facts found by the Tribunal as stated in the statement of case are as under : The assessee is a private limited company. The relevant facts in brief are that the assessee-company in the period relevant to the assessment year under reference carried on transport business by rail and road. On January 19, 1978, the assessee tendered and deposited with the State Bank of India, Calcutta, 81 high denomination notes of Rs. 1,000 each. The assessee also furnished a declaration as required at the time of tender of high denomination notes. Columns 15 and 16 of the aforesaid declaration furnished are as under : "15. Reasons for keeping the amount in cash in notes of such high denomination. Cash payment against railway freight and octroi payment at Shalimar Pani Tabla, Ragra Check Post." "16. When and from what source did the bank notes come into possession ? From time to time from Mercantile Bank Ltd., N.S. Road Branch, Calcutta, against the cheques withdrawn from current account.";