COMMISSIONER OF INCOME TAX Vs. CHANDI PRASAD KHETAN

JUDGEMENT

(1.) BY this application under Section 256(2) of the I.T. Act, 1961, hereinafter referred to as the Act, the Commissioner of Income-tax, Rajasthan, prays that the Tribunal be directed to state the case and refer to this court the following question, which according to the CIT is a question of law arising out of the order of the Tribunal :

(2.) THE relevant facts which need to be noticed for disposing of this application may be stated as follows :

(3.) FROM the order of the Tribunal, it will appear that the Tribunal has cancelled the penalty on the sole ground that the falsity of the explanation given by the assessee in respect of the two items of Rs. 1,00,000 and Rs. 75,000 found entered in his bank account is not at all sufficient for the imposition of penalty for concealment of the income. In this regard, the Tribunal has placed reliance on a decision in CIT v. Anwar Ali [1970] 76 ITR 696 (SC).