- (1.) The following two questions of law have been referred for our opinion : "1. Whether, the finding of the Tribunal that the assessee through oversight omitted to disclose capital gains in the first two returns was based on no evidence or partly relevant or partly irrelevant evidence and is otherwise perverse and arbitrary?"
(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in cancelling the penalty order passed under Section 271(1)(c) of the Income-tax Act, 1961 ?" 2. The brief facts are that the assessee, who is an individual, filed her return for the assessment year 1979-80 on January 18, 1980, in which she declared the total income of Rs. 1,550. She filed a revised return on February 18, 1982, wherein the total income was shown at Rs. 45,130. The Assessing Officer made an ex parte assessment under Section 144 of the Income-tax Act on the total income of Rs. 48,970 on March 10, 1982. In this assessment order and out of this total income, no part was linked with the capital gains of the assessee.
(3.) Before the order dated March 10, 1982, could be served on the assessee, she filed a second revised return on March 24, 1982, disclosing capital gain of Rs. 45,120 on the sale of jewellery. The total income in the revised return then was declared at Rs. 88,220. The Assessing Officer cancelled the ex parte assessment made on March 10, 1982, under Section 146 of the Act and in the fresh assessment made on March 15, 1984, he held that the second revised return filed on March 24, 1982, was invalid and out of time. In the fresh assessment, the Assessing Officer made an addition on account of capital gain on the sale of jewellery and also initiated proceedings under Section 271(1)(c) of the Income-tax Act for not disclosing the capital gain in the original return. After considering the reply of the assessee, the Assessing Officer levied a penalty of Rs. 20,503 under Section 271(1)(c) of the Act, being 100 per cent, of the tax sought to be avoided by the assessee on the concealed income.;