Whether, on the facts and in the circum stances of the case, the Tribunal is correct in reducing the penalty under section 271(1)(c) from Rs.70,000 to Rs.5,000?" The High Court was of the opinion that the third question did not clearly bring out the matter in dispute between the parties and as such it was reframed as follows: "Whether, on the facts and in the circum stances, the finding of the Tribunal that the assessee had not concealed income to the extent of Rs.67,500 and Rs.21,700 within the meaning of section 271(1)(c) of the Indian Income Tax Act, 1961, is correct in law?" The High Court noted that the Income Tax Officer had made certain additions and disallowed certain expenses and of the various amounts disallowed only three amounts were required to be considered by the High Court namely; (i) inflation in price of sugar cane of an amount of Rs.48,500, (ii) excess shortage claimed for cane 697 Rs.67,500 and (iii) salary of out station staff of loading contractors of Rs.21,700.