COMMISSIONER OF INCOME TAX Vs. MOTI LAL SHARMA

JUDGEMENT

(1.) IN this petition under S. 256(2) of the INCOME TAX ACT, 1961 (hereinafter referred to as the Act) the Revenue seeks a direction to the Tribunal to refer the following question of law for the opinion of this Court :

(2.) THE assessee filed a return of income of Rs. 1,69,153 for the asst. year 1987 -88 which was accepted as such by the ITO under S. 143(1) of the Act. Subsequently the Assessing Officer came to learn that the assessee had during the relevant previous year ending on 31st March, 1987, received a sum amounting to Rs. 21,00,000 from his employers for rendering valuable services to them for getting enhanced compensation under the Land Acquisition Act, 1894. Accordingly, action under S. 147(a) was taken and the aforesaid amount of Rs. 21,00,000 was added to the income of the assessee after conducting an enquiry to that effect.

(3.) THE assessee being aggrieved by the order of the CIT(A) upholding the penalty imposed under s. 271(1)(c) of the Act filed an appeal before the Tribunal. When the aforesaid matter came up for hearing before the Tribunal, the quantum appeal was already decided by the Tribunal as aforesaid, and the amount was deleted by the Tribunal in the quantum assessment. In view of the aforesaid factual position the Tribunal cancelled the penalties imposed in view of the fact that the basis on which penalties were imposed had already been deleted by the Tribunal in the quantum assessment and directed the Assessing Officer to refund the amount of penalty in case the same had been recovered. The Revenue being aggrieved filed a petition under S. 256(1) seeking reference of the question of law quoted hereinabove before the Tribunal which was dismissed by the Tribunal on the ground that the findings recorded by the Tribunal were one of fact and no question of law arose. Hence this application.