Penalty under section 271(1)(c) upheld despite wrong statutory reference, as the facts supported the levy.

Penalty under section 271(1)(c) remained valid where the assessee did not comply with notices and income was estimated on assessment, because a mistaken reference to an unamended or deleted provision did not vitiate the levy when the facts supported action under the existing provision. The Court treated the objection as essentially factual and held that no substantial question of law arose. The Tribunal was therefore justified in restoring the penalty order.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was justified despite the assessing authority referring to an unamended or non-existent provision, and whether the Tribunal was right in restoring the penalty.

Analysis: The assessment was made after the assessee failed to comply with notices and income was estimated. The penalty was levied under section 271(1)(c) on the basis of the assessed income. The Court held that a mistaken reference to a wrong or deleted provision did not by itself invalidate the penalty when the facts supported action under the existing provision. The reference was treated as raising essentially a question of fact, and no question of law arose.

Conclusion: The penalty under section 271(1)(c) was held to be valid, and the Tribunal was justified in restoring the order imposing penalty.

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