SEN, J. - (1.) THE following question of law has been referred by the Tribunal to this Court under s. 256(2) of the IT Act, 1961 (`the Act'): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the IAC was not justified in imposing penalty under s. 271(1)(c) of the IT Act, 1961 when, even according to the assessee's own admission an addition in the interest account of Rs. 57,812 to the returned income was called for?"
(2.) THE relevant assessment year is the asst. yr. 1965-66. The dispute in this case is about the validity of imposing penalty under s. 271(1)(c) of the IT Act, 1961. It appears from the order of the Tribunal that the Tribunal had taken note of the fact that in the ItO's original assessment, the income of the assessee was computed at Rs. 2 lakhs, which was subsequently reduced by the Tribunal to Rs. 1,25,000. Under the circumstances, the Tribunal on a review of the facts came to the conclusion that no penalty was leviable.
(3.) WE do not find any infirmity or illegality in the order of the Tribunal. Hence, the question is answered in the affirmative and in favour of the assessee.;