SAEED AHMAD Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THE petitioner is a railway contractor and carries on business under the name and style of M/s. Saeed Ahmad and Sons. He filed an income-tax return for the assessment year 1964-65 before the Income-tax Officer B-Ward, Circle II, Lucknow, opposite party No. 2, indicating an income of Rs. 23,968.00. THE amount of income in the return filed was arrived at as follows: <FRM>JUDGEMENT_28_ITR79_1971Html1.htm</FRM>

(2.) IT would thus appear that no actual accounts of income and expenditure were filed, but the income was assessed at certain rates of estimated profits. The return was not accepted by the Income-tax Officer concerned and the returned income enhanced to Rs. 52,017.00, the Income-tax Officer applying the following rates :

(3.) THE imposing of penalty has been challenged on some other grounds also, namely, of the show cause notice being not a proper notice, being vague and uncertain and its failing to disclose the alleged concealing of income and also on the ground, which ground though not specifically taken in the petition, has been tried to be urged before us that the Explanation could not control the provisions of the substantive enactment.