1971 (12) TMI 31

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....sment year 1963-64. The assessee carries on retail timber business. The Income-tax Officer made ail addition in the trading account to the tune of Rs. 5,432, on the ground that there was no stock register and quantitative tallies and that the result shown by the assessee was lower as compared to the rates applied by the department in earlier years. The Income-tax Officer found a deposit of Rs. 12,162, being a credit to the assessee's account. This amount was also added and the explanation given by the assessee that the same represented 'the moneys received from the sale proceeds of ornaments was not accepted. The assessee, thereafter, filed an appeal before the Appellate Assistant Commissioner and he upheld both the additions. The Income-ta....

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....ear to the court and the Tribunal disposed of the contention raised by the assessee on the basis that no such notice had been issued simultaneously with the passing of the above order or some time thereafter. In respect of the contention that the Appellate Assistant Commissioner had no jurisdiction to impose a penalty in respect of concealment detected by the Incometax Officer, the Tribunal held that the Appellate Assistant Commissioner was fully competent to initiate the penalty proceedings and in support of this contention, reliance has been placed upon a decision of the Supreme Court in Kamlapat Motilal v. Commissioner of Income-tax. In respect of the second contention, it took the view that section 271(1)(c) of the Act did not requir....

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....lars of income. In the present case, the appellate proceedings were undoubtedly the proceedings under the Act and the Appellate Assistant Commissioner reached the necessary satisfaction in the course of those proceedings. It would thus appear that the conditions requisite for the application of sec tion 271(1) of the Income-tax Act, 1961, were satisfied. The opening part of section 271(1) of the Act corresponds to section 28(1) of the Indian Income tax Act, 1922. The relevant part of section 28(1) of the Indian Income-tax Act, 1922, may be quoted : " If the Income-tax Officer, the Appellate Assistant Commissioner or the Appellate Tribunal, in the course of any proceedings under this Act, is satisfied that any person ..........." These....