1999 (7) TMI 57

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....short "the Act"), seeking a direction to the Income-tax Appellate Tribunal to state the case and refer the following questions for the opinion of this court : "1. Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in law in dismissing Department's appeal against the Commissioner of Income-ax (Appeals) order cancelling penalty of Rs. 64,136 levied ....

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....nserved. The assessee surrendered all the cash credits. Accordingly, the amount so surrendered was added to the income of the assessee. On account of the said addition, penalty proceedings under section 271(1)(c) of the Act were initiated against the assessee. The explanation furnished by the assessee to the effect that the cash credits were surrendered on an understanding with the Department t....

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....t to surrender the amounts but merely because the assessee has surrendered the amounts it did not follow that the amount agreed to be added represented its concealed income. The surrender so made also stand accepted and the Revenue has brought no material on record, besides the factum of surrender to show that the amounts involved represented undisclosed income of the assessee." The Revenue's a....

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....oted findings recorded by the Tribunal are pure findings of fact and cannot be said to be perverse or unreasonable. In any case the same are not sought to be challenged by the Revenue as perverse in the proposed questions. The ratio of the decision of the Karnataka High Court in CIT v. K. P. Sampath Reddy [1992] 197 ITR 232, relied upon by Mr. R. D. Jolly, learned senior standing counsel for th....