COMMISSIONER OF INCOME TAX Vs. LALIT MOHAN

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961.

(2.) EX parte assessment orders were passed against Sri Lalit Mohan for the assessment years 1962-63 and 1963-64 and in due course penalties were levied on him under sections 271(1)(a), 271(1)(b) and 273(b) of the Income-tax Act, 1961. On appeal against the assessments, the Appellate Assistant Commissioner of Income-tax held that the status of the assessee for assessment purposes was that of Hindu undivided family and not, Lalit Mohan, as an individual. On appeal against the penalties, the Appellate Assistant Commissioner of Income-tax found that since the status of the assessee had been determined to be that of an Hindu undivided family and as that finding had become final, the department not having filed an appeal against if, the penalties imposed in respect of the income of a Hindu undivided family on an individual could not be sustained. The department's appeal was dismissed by the Tribunal which agreed with the view taken by the Appellate Assistant Commissioner of Income-tax. The Commissioner of Income-tax is aggrieved and at his instance the following question of law has been referred to us :