Substantial question of law on concealment penalty justified Supreme Court appeal certificate under section 261.

A certificate for appeal to the Supreme Court was found warranted because the question whether an assessee's choice between two possible views could amount to deliberate concealment attracting penalty raised a substantial question of law of general importance. The Court noted that earlier decisions had favoured the assessee, while the impugned judgment had adopted a Revenue-favourable view, making the matter fit for appeal under section 261. The application succeeded and the certificate for appeal was directed to be issued.

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Issues: Whether a certificate for appeal to the Supreme Court was warranted on the question whether, where the assessee adopts one of two possible views, the case involves deliberate concealment attracting penalty.

Analysis: The Court found that the controversy raised a substantial question of law of general importance. It noted that the issue had been decided in favour of the assessee in earlier decisions, whereas the impugned judgment had proceeded on a view favourable to the Revenue. On that basis, the Court treated the matter as a fit case for appeal under section 261.

Conclusion: The certificate for appeal to the Supreme Court was directed to be issued, and the application succeeded.

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