TaxTMI 
TaxTMI 
1985 (10) TMI 12
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....l, filed his return of income for the assessment year 1969-70 on December 26, 1969. While declaring the total income of Rs. 4,137, the assessee stated in Part-IV of the return that he had received an amount of Rs. 19,499 as prize from a crossword competition. The Income-tax Officer completed the assessment under section 144 of the Act in view of the default committed by the assessee in complying w....
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....n the case of Nazir Ahmed U. Digmar, held that the imposition of penalty was not justified inasmuch as the assessee had made a disclosure of the Income in Part-IV of the return. The Appellate Assistant Commissioner, therefore, held, following the decision of the Tribunal, that there was no gross or wilful neglect on the part of the assessee. He, therefore, set aside the Income-tax Officer's order ....
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....ether the Tribunal was right in law in holding that there was no gross or wilful negligence on the part of the assessee nor was it a case of fraud and, therefore, levy of penalty on the basis of the Explanation to section 271(1)(c) of the Act, on the facts of the case, was not justified ?" For reasons which we will immediately state, we are of the opinion that both the questions must be answere....
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....ord competition, who on payment of 10 % of such money by way of commission arranged to secure a prize for such assessee which could be shown as won in a crossword competition while submitting the return for the relevant assessment year. The court came to the conclusion that this was a clear case of fraud inasmuch as fake winners were declared so that they could convert their unaccounted money into....