K.N. Seth, J.

1. For the assessment year 1970-71 while finalising the assessment the ITO came to the conclusion that the assessee had concealed particulars of its income. Since the minimum penalty leviable exceeded Rs. 25.000 he referred the case to the IAC under Section 274(2) of the I.T. Act. From the regular assessment the assessee preferred an appeal which was decided partly in its favour. On appeal by the Department, the Income-tax Appellate Tribunal by its order dated July 23, 1976, came to the conclusion that the assessee had suppressed particulars of the income of Rs. 81,000 odd. Thereafter, the petitioner moved an application to the Tribunal under Section 256(1) of the Act.

2. In response to the notice issued by the IAC under Section 274(1) the assessee submitted a written explanation. The IAC by his order dated January 24, 1977, imposed a penalty of Rs. 81,000. Against the aforesaid order of the IAC the assessee filed an appeal before the Income-tax Appellate Tribunal, Allahabad. The Tribunal decided the appeal by its order dated 21st September, 1978, reducing the penalty to Rs. 52,799. The petitioner thereupon filed a reference application before the Tribunal und