SUSHIL ANSAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) FOR the asst. yr. 1964-65 an assessment was completed on the respondent-assessee, Ram Lal Manohar Lal under s. 147(a) r/w s. 148 of the IT Act, 1961. By this assessment completed on 31st Jan., 1974 the assessee's total income was determined at Rs. 1,40,238 after including therein a sum of Rs. 77,026 on account of cash credits to the extent of Rs. 75,000 and interest claimed to have been paid thereon. Simultaneously proceedings under s. 271(1)(c) were initiated and the penalty of Rs. 77,026 was imposed. The assessee preferred appeals against both the assessment order and the penalty order. By an order dt. 29th Oct., 1981 in ITA No. 4843 (Del) 79 the Tribunal held that the re-assessment proceedings were invalid and cancelled the same. When the appeal against the penalty (ITA No. 1288/80) came before the Tribunal, the Tribunal cancelled the penalty consequent on its earlier order invaliding re-assessment.

(2.) BY this application, the CIT seeks a reference to the following question for the decision of this Court :