RAMASWAMI J.

The following four questions are referred under section 256 of the Income-tax :

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the penalty of Rs.12, 200 levied under section 271(1)(c) of the Income-tax Act, 1961, for the assessment year 1961-62 is illegal ?

2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the penalty of Rs. 6, 404 levied under section 271(1)(c) for the assessment year 1959-60 is illegal ?

3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the penalty of Rs. 8, 700 levied under section 271(1)(c) for the assessment year 1960-61 is illegal ?

4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the penalty of Rs. 6, 300 levied under section 271(1)(c) for the assessment year 1961-62 is illegal ?

one of the assessees is a firm of partnership and the other is a partner in the partnership. The assessment year in question in respect of the firm is 1961-62 and that for the individual partner are 19