Penalty under section 271(1)(c) turned on factual arithmetical error, with no referable question of law arising.

Penalty under section 271(1)(c) was deleted because the Tribunal found that the Department's certificate contained an arithmetical mistake in totalling, so the assessee's figures were not incorrect on that basis. The High Court treated this as a factual finding and noted a jurisdictional objection concerning the quantum of penalty imposed. On that footing, it held that no referable question of law arose from the Tribunal's order, and the reference application failed.

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Issues: Whether any question of law arose from the Tribunal's order deleting penalty under section 271(1)(c) of the Income-tax Act, 1961, and whether the penalty could be sustained when the Mandi Committee certificate contained a wrong totalling.

Analysis: The Tribunal had found, on the material before it, that the certificate relied upon by the Department contained an arithmetical mistake in totalling, and that the assessee's figures were therefore not incorrect on that basis. The High Court treated this as a factual determination and also noted that the penalty proceedings suffered from a jurisdictional objection regarding the quantum of penalty imposed. On this view, the dispute did not give rise to any referable question of law.

Conclusion: The reference application failed, as the Tribunal's decision was upheld on facts and no question of law was found to arise.

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