( 1 ) TRIBUNAL has referred the following question of law under Section 256 (1) of the Income Tax act, 1961 (hereinafter referred to as "act") for opinion to this Court.

"whether on the facts and in the circumstances of the case the learned I. T. A. was justified in holding that the penalty Under Section 271 (c) was not leviable?"

( 2 ) THE present reference relates to the assessment year 1987-88.

( 3 ) BRIEF facts of the case are as follows:

( 4 ) ASSESSEE respondent (hereinafter referred to as "assessee") is an individual and was doing proprietory business of purchase and sale of silver ornaments in the name of Mohan Lal narendra Kumar. The original return was filed of 20. 07. 1987 disclosing the income of Rs. 36,890/- Income declared in the return was accepted under Section 143 (1) of the Act vide order dated 15. 09. 1987. Just after the filing of the return a search was conducted under Section 132 (1)of the Act at the business as well as residential premises of the assessee. During the course of search four FDRs in the name of four minor children of the assessee were found and seized from the locker of the bank, owned by the assessee. Total investment in those fou