Referable question of law on penalty cancellation under section 271(1)(c) directed to be placed before the High Court.

The Punjab and Haryana HC note concerns cancellation of penalty under section 271(1)(c) of the Income-tax Act, 1961 and the existence of a referable question of law. The petition for reference was allowed, and the Tribunal was directed to refer the stated question of law to the High Court for opinion. No final adjudication on the merits of the penalty issue was recorded, so the document only records the procedural direction on reference rather than any substantive finding on concealment or penalty liability.

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Issues: Whether the Tribunal was correct in cancelling the penalty levied under section 271(1)(c) of the Income-tax Act, 1961, and whether a referable question of law arose for opinion.

Outcome: The petition for reference was allowed and the Tribunal was directed to refer the stated question of law to the High Court; no final adjudication on the merits of the penalty issue was recorded.

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