1975 (11) TMI 21

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e is a firm carrying on business in Indian and foreign yarn. In the assessment year 1954-55, the assessee filed its return showing an income of Rs. 14,806 consisting of income from dividends of Rs. 1,425 and income from business of Rs. 13,381, on the basis of its books of account. The Income-tax Officer, however, did not accept the said return, but proceeded to make the following three additions t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n 28(1)(c) of the Indian Income-tax Act, 1922, on March 30, 1959, and after issuing the show-cause notice and after hearing the assessee, levied penalty of Rs. 43,000 after getting the requisite approval of the Inspecting Assistant Commissioner. There was an appeal against the said levy of penalty before the Appellate Assistant Commissioner. Before him various contentions were raised. One of the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... it would be quite proper to take into account the tax actually avoided in so far as it is referable to the actual concealed income " and, in that view, the Tribunal ultimately reduced the penalty to a sum of Rs. 5,000. Aggrieved against the said order of the Tribunal, the revenue sought this reference and the following question of law is referred : " Whether, on the facts and in the circums....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng restricted to the tax evaded by reason of concealment. The Tribunal when it expressed the view that the tax actually avoided in so far as it is referable to the actual concealed income should alone be the basis for fixing the penalty, did not have the benefit of the views expressed by the Supreme Court in the above-said decision. In the light of the said Supreme Court decision, the Tribunal's v....