SAHITYA PRESS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income-tax Act, 1961.

(2.) THE assessee is a partnership firm. For the assessment year 1953-54, it filed a return showing an income of Rs. 20,000. THE return was rejected by the Income-tax Officer who assessed the income at Rs. 40,000. On appeal the assessment was reduced by about Rs. 8,000. THEreafter, the Income-tax Officer discovered that in the relevant year the assessee had divided between its partners a profit of Rs. 53,188. He also discovered that in the original return the assessee had not disclosed income from interest and property. THE Income-tax Officer made a supplementary assessment and also initiated proceedings for the levy of penalty. This Inspecting Assistant Commissioner of Income-tax ultimately levied penalty of Rs. 6,234 under Section 27l(1)(c) read with Section 274 of the Act on the charge that the assessee had concealed its income. THE Tribunal has rejected the assessee's appeal as also its application for a reference under Section 256(1) of the Act.