Reference on wealth-tax penalty questions was directed after the High Court found multiple issues of law in the Tribunal's order.

Questions of law were found to arise from the Tribunal's order concerning penalty under section 18(1)(a) of the Wealth-tax Act, including the maintainability of the Department's appeal, the assessee's liability to penalty despite being described as an individual, and the validity of notice under section 18(2). On that basis, the High Court directed the Tribunal to state the case and refer those questions for decision, treating the reference as maintainable in favour of the assessee.

---

---

Issues: Whether questions of law arose from the Tribunal's order so as to require a reference to the High Court.

Analysis: The assessee was proceeded against for penalty under section 18(1)(a) of the Wealth-tax Act, 1957, and the validity of the Department's appeal, the assessee's liability to penalty despite description as an individual, and the validity of notice under section 18(2) were all framed as questions of law arising from the Tribunal's order. The Court found that these questions did arise and directed a reference.

Conclusion: The reference was allowed and the Tribunal was directed to state the case and refer the questions to the High Court, in favour of the assessee.

---