SABYASACHI MUKHARJI, J.

( 1 ) IN the reference under Section 256 (2) of the I. T. Act, 1961, as directed by this court, the Tribunal has referred to this court the following questions :"1. Whether the Tribunal's finding of fact bearing on the question of penalty are perverse in that they are unsupported by and/or contrary to evidence ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the order under Section 271 (1) (c) ?"

( 2 ) THIS reference relates to four years, viz. , assessment years 1966-67 to 1969-70. The assessee is a registered firm and is a manufacturer of machine parts, etc. The assessee also has and, at the relevant time, had income from house properties and other sources. According to the assessee, the assessee's accounts were accepted and acted upon by the revenue from year to year and the assessee further asserts that no serious challenge was ever made to their genuineness or that those were not kept regularly in the course of the assessee's business. The assessee started construction of a ten-storeyed building at No. 8/9, Bentinck Street, Calcutta, during the previous year relevant to the assessment year 196

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