COMMISSIONER OF INCOME TAX Vs. NARYANASWAMI PATHER T

JUDGEMENT

(1.) IN pursuance of the direction given by this Court in TCP No. 247 of 1978, dt. 23rd February, 1981, the Tribunal referred the following two questions, for the opinion of this Court, under s. 256(2) of the IT Act, 1961 :

(2.) THE assessee late Sri Narayanaswami Pather did not disclose income from investments in the name of Smt. Nagalakshmi Ammal, his wife and Sri Subramanian, his son. THE original assessment for the asst. yr. 1965-66 was reopened and the following additions were made :

(3.) WE have heard the learned standing counsel appearing for the Department and perused the records carefully. The fact remains that in reassessment for the asst. yr. 1965-66, the additions as stated hereinabove, were made to the extent of Rs. 230, plus Rs. 16,868, plus Rs. 29,300, plus Rs. 37,510. In pursuance of these additions, the IAC levied a penalty of Rs. 83,908 on the ground that the assessee had concealed his transactions done in the name of his wife and also concealed his minor son's income. The assessee failed to establish that the funds belonged to his wife. Therefore, it was considered that the abovesaid amounts belong to the assessee.