1990 INSC 0452
                                                    G. C. Agarwal

                                                           Vs

                            Commissioner of Income-Tax, Assam, Nagaland, Etc

                                     Civil Appeals Nos. 213 to 215 of 1976

                                  (K. N. Singh, K. N. Saikia, Kuldip Singh JJ)

                                                      07.09.1990

                                                     JUDGMENT

These appeals are by way of special leave granted by this court against the judgment and order of
the Gauhati High Court dated July 16, 1975. (see [1976] 102 ITR 408).

The Income-tax Appellate Tribunal referred two questions to the High Court under section 256(1) of
the Income-tax Act, 1961 (hereinafter referred to as "the Act"). These questions ar :

                  "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was
                  correct in holding that penalties under section 271(1)(c) of the Income-tax Act read
                  with the Explanation to that section were justified in respect of the assessment years
                  1963-64, 1964-65 and 1965-66 ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding
that, for the purpose of calculation of penalties, the difference between the tax on the income shown
in the first returns and the tax on the incomes assessed shall be taken as the amount of tax that
would have been avoided ?"

On a detailed discussion, the High Court answered both the questions against the assessee. Hence,
these appeals before this court.

After hearing learned counsel for the parties at length, we do not find any error of law in the order
of the High Court warranting interference by this court. The appeals fail and are, accordingly,
dismissed; but there will be no order as to costs.

Appeals dismissed.

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