Concealment penalty under section 271(1)(c): Tribunal's cancellation raised a referable question of law after later precedent.

The Tribunal cancelled concealment penalties under section 271(1)(c) by relying on earlier decisions accepting the assessee's explanation. The High Court noted that the earlier view drawn from section 28(1)(c) of the 1922 Act no longer governed the interpretation of section 271(1)(c) of the Income-tax Act, 1961 after a later Full Bench ruling. On that basis, the legality of cancelling the penalties raised a referable question of law arising from the Tribunal's order, and Question No. 1 was directed to be referred for the Court's opinion.

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Issues: Whether question No. 1 regarding the Tribunal's cancellation of concealment penalties under section 271(1)(c) of the Income-tax Act, 1961 arose from the Tribunal's order and required reference to the High Court.

Analysis: The Tribunal had reversed the penalty order by relying on earlier decisions accepting the assessee's explanation. The Court noted that the earlier view based on section 28(1)(c) of the Indian Income-tax Act, 1922 had since been explained as no longer governing the construction of section 271(1)(c) of the Income-tax Act, 1961 after the later Full Bench decision. On that basis, the question concerning the legality of cancelling the penalties was a referable question of law.

Conclusion: Question No. 1 was held to arise from the Tribunal's order and was directed to be referred for the Court's opinion.

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