1980 (11) TMI 22

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....ars of income by showing the business income at Rs. 4,434 in the return ? 2. Whether the Income-tax Appellate Tribunal, in the absence of an appeal by the department, could impose a penalty with respect to item No. 2, regarding business profits in respect of which the petitioner had been absolved of any liability as per the order of the Inspecting Assistant Commissioner? " It is common ground that in case question No. 2 is answered in favour of the assessee, the need to answer the other question does not arise. The assessee was carrying on business in steel and hardware. In respect of the assessment year 1961-62, corresponding to the accounting year Diwali 1959, to Diwali 1960, the assessee filed a return showing the total income u....

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....y its order dated December 8, 1967 (annex " E "), came to the conclusion that the two additions under the heads of " Accretion to capital " and " Investment in properties " do not attract any penalty and the same were, therefore, set aside. The Tribunal, however, proceeded to levy penalty on the addition of Rs. 35,258, made under a different head, namely, business income, in respect of which the IAC had not imposed any penalty and no proceeding was taken by the department by way of an appeal or cross-objection. The assessee being aggrieved by the imposition of penalty under fresh head by the Tribunal in its appeal against the IAC's order, annex "D", applied for a reference to this court. The Tribunal declined to make a reference, which l....