JUMABHAI PREMCHAND HUF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question was referred for the opinion of this Court by the Tribunal :

(2.) THE assessee is the Karta of HUF. For asst. yrs. 1968 -69 and 1969 -70, he had drawn amount of Rs. 4,315 and Rs. 5,033 on account of household expenses. A search was carried out at the premises of the assessee on 29th Sept., 1975. Certain golden and silver ornaments were found. It was also noticed that there were immovable properties in the name of Smt. Manguben, Karta's wife. The assessee subsequently made voluntary disclosure of his income. Fresh returns were also filed by him. Proceedings were initiated against the assessee in respect of asst. yrs. 1968 -69 to 1973 -74. In the present proceedings, we are concerned with household expenses of the assessee for two years; 1968 -69 and 1969 -70.

(3.) THERE were nine members in the family of the assessee. Considering the large family of the assessee, his social status, the fact that three daughters were studying and further that three daughters got married between 1968 -69 and 1974 -75, the ITO held that the household expenses shown by the assessee was extremely low. He, therefore, estimated such expenses at Rs. 11,000 adding Rs. 6,685 for the asst. year 1968 -69 and at Rs. 12,000 adding Rs. 6,967 for the asst. yr. 1969 -70. By an order dt. 28th March, 1977, the ITO also directed to issue notice to the assessee to show cause as to why penalty should not be imposed on him under S. 271(1)(c) r/w Explanation and for late submission of return.