Penalty for untrue income estimate upheld where the Tribunal's finding rested on facts, not a referable question of law.

Penalty under section 273(a) was sustained because the assessee had furnished an estimate that the Tribunal found it knew or had reason to believe was untrue. The High Court noted that the contention about the company's books closing on 31 October each year had not been raised before the tax authorities or the Tribunal, and the explanation offered there was limited to unforeseeable expenses or income and circumstances beyond control. The additional material filed before the Tribunal did not adequately explain the discrepancy between returned income and the estimate. The finding was treated as a factual conclusion, so no referable question of law arose.

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Issues: Whether any referable question of law arose from the Tribunal's finding sustaining penalty under section 273(a) of the Income-tax Act, 1961, on the ground that the assessee had furnished an estimate it knew or had reason to believe to be untrue.

Analysis: The record did not show that the plea regarding the company's books being closed on 31 October each year was raised before the tax authorities or the Tribunal. The assessee's explanation before the authorities was only that certain expenses or income could not be anticipated and that circumstances beyond its control prevented accurate figures. The further documents placed before the Tribunal did not establish a sufficient explanation for the discrepancy between the returned income and the estimate filed. On these materials, the Tribunal's conclusion rested on appreciation of facts and did not disclose any legal infirmity.

Conclusion: No question of law arose for reference, and the Tribunal's finding was upheld.

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