(1.) The Income-tax Appellate Tribunal has referred the following question of law under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court :
(2.) The reference relates to the assessment year 1975-76.
(3.) Briefly stated, the facts giving rise to the present reference are as follows : The Income-tax Officer had imposed penalty amounting to Rs. 79,136 on the applicant on account of concealment of particulars of his income in respect of the following item : "Inflation of purchase in Lehi and Tilli account Rs. 20,000Unexplained loss and shortage in Tilli account Rs. 9,568Shortage in groundnut account Rs. 10,000 Rs. 39,568