TMI Blog1999 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... 1985, of the Delhi High Court ((1986) 159 ITR 339 (Del), answering two sets of references made to it under section 256(2) of the Income Tax Act, 1961, against the revenue. Both sets of questions relate to the assessment year 1962-63. The first set of questions relates to the assessee's quantum appeals; the other set relate to the consequential penalty proceedings. The questions reads thus : In I. T C. No. 29 of 1973 "1. Whether there was any evidence before the Tribunal to justify the finding that profit of Rs. 2,10,000 made by Raisina Cold Storage and Ice Co. Limited was the assessee's income ? 2. Whether there was any evidence before the Tribunal to justify the finding that the payment of Rs. 41,039.67 made to Surjit Singh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, for the purpose of calculation of the penalty, assessed income has to be modified by making suitable adjustment in the value of the closing stock consequent upon disallowance of a portion of the purchase price ?" 2. It is patent from the questions in the quantum appeal that they are questions of fact. The Income Tax Appellate Tribunal is the final fact-finding authority and it had decided against the assessee. The High Court ought not to have entered into a discussion of the evidence to come to a conclusion on facts contrary to that reached by the Tribunal. That it had done so is clear from the judgment under appeal. Thus, it stated : "The first question to be asked by us is whether there is any evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e set aside and the reference is dismissed, affirming the view taken by the Tribunal. 3. Having regard to the answers that were given by the High Court on the quantum appeal, it came to the conclusion that the reference on the penalty appeal did not survive and it answered the questions thereon accordingly. We do not have the record of the penalty appeal before us so as to be able to decide the reference thereon. Having regard to the conclusion that we have reached on the quantum appeal, it is clear that the reference on the penalty appeal shall have to be decided on the record on the basis of the Tribunal's findings of fact, for which purpose we set aside the order of the High Court thereon and remit the reference on the penalty appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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