COMMISSIONER OF INCOME TAX Vs. MATHEN C M

JUDGEMENT

(1.) THE questions of law referred to this court by the Income-tax Appellate Tribunal, Cochin Bench, on a direction given by this court in O.P. No. 2755 of 1975 are the following :--

(2.) THE assessment year involved is 1964-65, the accounting period ending on March 31, 1964. THE assessee carried on business in the name of Asok Pictures. In the year of account, the Income-tax Officer noticed a credit of Rs. 35,000. Ultimately, having found that the credit entries really represented the assessee's own income, penalty proceedings were initiated under Section 271(1)(c) of the Income-tax Act. By annexure "B", the Income-tax Officer, Ernakulam, levied a penalty of Rs. 10,000. Aggrieved by that order of penalty, the matter was taken in appeal before the Appellate Assistant Commissioner of Income-tax, Trivandrum, who by annexure "C" order confirmed annexure "B" order passed by the Inspecting Assistant Commissioner. Against the order of penalty, an appeal was filed before the Income-tax Appellate Tribunal and annexure "D" is the order disposing of the appeal. THE Tribunal allowed the appeal against the penalty while dismissing the appeal against the quantum filed against annexure "C". While disposing of the appeal, in paragraph 7, the reasons advanced in support of the conclusion read as follows:

(3.) FOR the foregoing reasons, we answer question No. 1 referred in favour of the Revenue and against the assessee. Regarding questions Nos. 2 and 3, we decline to answer, as they do not arise for consideration.