Concealment of income remained a factual finding where undisclosed profits and omitted income supported penalty and no legal question arose.

Concealment of income was upheld where the record showed that the assessee had distributed larger profits among the partners than were returned and had omitted income from interest and property. The fact that the assessee had previously been assessed on estimate did not excuse failure to disclose true income. On those findings, concealment was treated as a question of fact supported by adequate material, so no referable question of law arose under section 256(2) of the Income-tax Act, 1961.

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Issues: Whether the assessee had concealed income so as to justify penalty, and whether any question of law arose for reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The Tribunal's finding of concealment was supported by material showing that the assessee had distributed larger profits among the partners than were disclosed in the return and had omitted income from interest and property. The circumstance that the assessee had previously been assessed on estimate did not excuse non-disclosure of true income. The existence of concealment, on the facts found, was a question of fact, and the record disclosed adequate material to support that finding.

Conclusion: No question of law arose from the Tribunal's order, and the penalty for concealment was upheld.

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