COMMISSIONER OF INCOME TAX Vs. GULAMRASUL M PATHAN

JUDGEMENT

(1.) Mr B B Naik, learned counsel for the Revenue. None for the respondent assessee, though served.

(2.) The Income Tax Appellate Tribunal, Ahmedabad Bench 'A' has referred the following question under section 256(1) of the Indian Income Tax Act, 1961 for the opinion of this Court which relates to Assessment Year 1987-88 and arises out of Income Tax Appeal No.4037/Ahd/1990: Whether the Appellate Tribunal is right in law and on facts in deleting the penalty levied under section 271(1)(c) of the Act ??

(3.) The short facts giving rise to the present Reference are that the assessee is an individual, the assessee and one Shri Mohmed Noormohmed were travelling in a car on 18.6.1986, they were apprehended by police authorities and cash of Rs.12,13,850/- was recovered from their possession and the same was handed over to the Enforcement Authorities. The Income Tax authorities requisitioned the same under section 132A of the Income Tax Act, 1961 and took the money in their custody. During the course of the investigation, it was earlier claimed that the cash of Rs.8,50,000/- belonged to M/s.Belite Founders of which the assessee was a partner and the balance amount of Rs.3,63,850/- was belonging to M/s.Amrut Sales India of Rakhial, Ahmedabad. The assessee however, agreed to surrender the said amount as income and submitted that the tax thereon will be paid.