BHARATH SEA FOODS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Section 261 of the Income-tax Act, 1961, for leave to appeal to the Supreme Court from the judgment in Income-tax Reference No. 287 of 1982 (CIT v. Bharath Sea Foods [1992] 195 ITR 60 (Ker)). At the instance of the Revenue, the following question came up for consideration in Income-tax Reference No. 287 of 1982 (see [1992] 195 ITR 60. 61) :

(2.) IN the course of the assessment proceedings, it was found that the assessee had concealed particulars of his income to the extent of Rs. 1,00,864 and proceedings under Section 271(1)(c) of the INcome-tax Act, 1961, were initiated. The above amount represented the purchase price of raw materials in the peeling shed at Chandiroor for which no explanation was offered. Pursuant thereto, the INspecting Assistant Commissioner imposed a penalty of Rs. 1,05,000 which was reduced by the Appellate Tribunal. This court held that the Appellate Tribunal has misdirected itself in law in reducing the penalty imposed by the INspecting Assistant Commissioner from the amount of Rs. 1,05,000 to Rs. 47,000. The Appellate Tribunal had relied on materials which were not relied on by both sides. It was not the case of the assessee nor that of the Department that the opening balance in the ledger did not reflect the true state of affairs. Concealment was found against the assessee concurrently and there was no challenge to the above finding.

(3.) IN the result, the petition fails and it is dismissed.