2001 (2) TMI 94

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....dia Ltd. (GPIL). As a result of search operations carried out under section 132 of the Income-tax Act, 1961, at the business/residential premises of GPIL and its wholesale dealers, incriminating documents including circulars issued by GPIL to its wholesale/retail dealers requiring them to charge premium/"on money" on certain popular brands of cigarettes and remit a major portion of such " on money" to GPIL and utilise the balance on advertisement and publicity, were found and seized. During the course of proceedings under section 132(5), the partners of the firm made confession about charging of " on money" which was not accounted for in the books of account. After the search operations, during the course of assessment proceedings, the asse....

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.... of the first appellate authority (D C (A)), who cancelled the penalty levied under section 271(1)(c) of the Income-tax Act, 1961, by holding that though the facts disclosed concealment of income by the wholesale dealers of the GPIL, yet such dealers could not be successfully visited upon penalty under section 271(1)(c) in view of the circumstances they were forced to charge on money ?" The Tribunal vide its order dated April 23, 1998, in Reference Application No. 31/JP of 1998 has refused to make a reference on the ground that the finding recorded by the Tribunal is based on appreciation of material available on record which does not give rise to any question of law and following its decision in other matters, rejected the application. ....