TMI Blog1971 (4) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... " Whether, on the facts and in the circumstances of the case, the Tribunal's opinion that the penalty of Rs. 2 lakhs could not be levied on the assessee is erroneous in law ? " We now proceed to deal with the question as reframed by us. The assessee, Raja Mohammed Amir Ahmad Khan, was a Taluqdar. His estate was situated in the District of Sitapur. He was assessed to income-tax for the assessment year 1942-43, the relevant year being the year ending on September 30, 1941. The assessee had income from property, dividends and other sources. The Income-tax Officer assessed him for the relevant year on an income of Rs. 1,00,662. The assessment order was made on June 29, 1943. Later on, the Income-tax Officer initiated proceedings under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation was the same, which he had given in the proceedings under section 34. Some additional evidence was produced by him. The Income-tax Officer did not rely on his evidence and imposed a penalty of Rs. 2 lakhs on him. On appeal, the Appellate Assistant Commissioner set aside the order of the Income-tax Officer. But the Income-tax Tribunal set aside the appellate order and directed the appellate authority to rehear the appeal. On remand, the appellate authority agreed with the Income-tax Officer and upheld his order of penalty. But the Tribunal differed from the aforesaid authorities and set aside their orders. The reference has now been made at the instance of the Commissioner of Income-tax. Summing up the survey of the entire facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's income and that the assessee had concealed it from the view of the income-tax authorities. Now, this court does not sit as a court of appeal over the judgment of the Tribunal. It can re-check the finding of fact recorded by the Tribunal within certain narrow limits. We may interfere with the finding of fact if the finding is based on inadmissible evidence or has been arrived at by ignoring admissible and relevant evidence, or is without support in evidence, or if unreasonable and perverse (vide Sree Meenakshi Mills v. Commissioner of Income-tax ). In G. Venkataswami Naidu and Co. v. Commissioner of Income-tax the Supreme Court followed Meenakshi Mills and added : " There is yet a third class of cases in which the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and perverse. We shall now consider these arguments. But before we do so, it is necessary to refer to a decision of the Supreme Court in Commissioner of Income-tax v. Anwar Ali . It was a case under section 28(1)(c). The Income-tax Officer and the Appellate Assistant Commissioner had imposed a penalty on the assessee. In appeal, the Appellate Tribunal reversed their orders and then a reference was made to the High Court of Calcutta. The High Court was of opinion that no penalty could be imposed on the assessee in the circumstances of the case. Then there was an appeal to the Supreme Court. The Supreme Court held : " Section 28(1)(c) is penal in the sense that its consequences are intended to be an effective deterrent which will pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proceedings under section 34, none of the three authorities had recorded a clear finding that the assessee's explanation was false. The core of the finding as to the explanation of the assessee was that it was not believable. No doubt the Tribunal had at one place said that the explanation of the assessee was " untrue " and ought to be rejected yet we do not think that the Tribunal has used the word " untrue " as a substitute for " false ". The Tribunal has rejected the assessee's explanation by saying that either it was " difficult to believe " or was " incredible " and, therefore, in the opinion of the Tribunal, the explanation ought to be rejected. Sri Gopal Behari has submitted that the amount is a huge one. It is not likely that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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