JUDGMENT This is a Reference under section 226(1) of the Income Tax Act, in which two questions have been referred to us for our opinion, relating to penalty imposed:
"1. Whether, on the facts and in the circumstances of the case, the Tribunal has rightly invoked the provisions of the Explanation to section 271(1)(c) which was deleted with effect from 1-4-1976 ?
2. Whether there was any material for the Income Tax Appellate Tribunal to hold that the assessee had not discharged the burden within the meaning of Explanation to section 271(1)(c) as it stood prior to 1-4-1976 and the Tribunal was right in holding that the assessee was liable to penalty under section 271(1)(c) of the Act ?"
2. The Tribunal has found that the assessee has not discharged his burden under the Explanation to section 271(1)(c) of the Income Tax Act. This is a finding of fact and we cannot interfere with the same. Hence, we decide the Reference in the affirmative, i.e., in favour of the department and against the assessee.
2. The Tribunal has found that the assessee has not discharged his burden under the Explanation to section 271(1)(c) of the Income Tax Act. This is a finding of fact and we cannot interfere with the same. Hence, we decide the Reference in the affirmative, i.e., in favour of the department and against the assessee.