COMMISSIONER OF INCOME TAX Vs. PARTHASARATHY N M

JUDGEMENT

(1.) IN this reference under section 256(1) of the INcome-tax Act, 1961 (for short, "the I. T. Act"), at the instance of instance of the Commissioner of INcome-tax, Tamil Nadu-II, Madras, the following questions of law had been referred to this court for its opinion :

(2.) THE assessee, an individual, is running a small scale industry at Vellore, in the name of "Electrotechnik". He is manufacturing and selling heat treatment plants and also heat treatment salts to various organisations, including the defence establishment of the Government of India. In September, 1968, he was granted a licence for importing permissible spare parts for construction machinery and spares of machine tools. Misunderstanding the provision contained in the handbook of Rules and Procedures, 1968, regarding imports of goods it is said, in March, 1970, he imported on the basis of this Licence 400 drums of sodium cyanide from Hungary.

(3.) MEANWHILE, he entered in his accounts, the transaction as under, reveling a profit of Rs. 14,795, which, but for the payment of fine, would have been much more : <FRM>JUDGEMENT_105_ITR212_1995Html1.htm</FRM>