Judgment ( 1. ) THIS is an application made by the Revenue (Income-tax Department) under Section 256 (2) of the Income-tax Act, 1961, requesting this court to call for the reference on the question proposed for being answered by this court under Section 256 (1) of the Income-tax Act. This application arises out of an order, dated September 9, 1993, passed by the Income-tax Appellate Tribunal, Indore, in I. T. A. No. 673/ind of 1992. The Tribunal by impugned order declined to make the reference by holding that the case does not involve any question of law and what is involved is a pure question of fact. It is this finding which is questioned by making this application and requesting this court to ask the Tribunal to make the reference. ( 2. ) HEARD Shri R. L. Jain, learned counsel for the applicant and, Shri B. K. Joshi, learned counsel for the non-applicant. ( 3. ) HAVING heard learned counsel for the parties and having perused the record of the case, we are of the opinion that the Tribunal was right when it declined to make the reference to this court. ( 4. ) IN our considered view, the case does not involve any question of law and what is proposed also does not involve any question of law which needs to be answered by this court under Section 256 (1) of the Act. ( 5. ) THE issue relates to imposition of penalty under Section 271 (1) (c) of the Act. The Commissioner of Income-tax (Appeals) and the Tribunal quashed the penalty imposed by the Income-tax Officer (Assessing Officer) holding that in the absence of any material on record brought by the Assessing Officer showing concealment in the income of the assessee, no penalty for alleged concealment could be imposed. While rejecting the prayer for making a reference on this issue, the Tribunal rightly held that such issue does not involve any question of law as such and since the Commissioner of Income-tax (Appeals) and the Tribunal decided the issue on the facts, no question of law arises in such case. ( 6. ) WE concur with the observation of the Tribunal and find that the issue really does not involve any question of law as such within the meaning of Section 256 (1) of the Act for being answered by this court. ( 6. ) WE concur with the observation of the Tribunal and find that the issue really does not involve any question of law as such within the meaning of Section 256 (1) of the Act for being answered by this court. The imposition of penalty requires some material to be used against the assessee which may be held to be a case of concealment. No such factual material could be filed or produced or taken note of by the Assessing Officer and hence, the Commissioner of Income-tax (Appeals) and the Tribunal quashed the imposition of penalty. This court cannot go into the question of fact recorded by the two appellate authorities and hence such finding being a finding of fact, the same is binding on this court. We, thus, find that no question of law as such arises in the case. ( 7. ) THE application is thus, found to be devoid of any substance. It is dismissed.