RAJ KUMAR CHAURASIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN respect of the assessment years 1973 -74 to 1976 -77, the Income Tax Appellate Tribunal, Allahabad has referred the following questions of law under Section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court: Assessment Year 1973 -74: 1. Whether there was any material before the Tribunal to hold that the assessee was guilty of concealment and of furnishing inaccurate particulars of income ?

(2.) WHETHER on the facts and in the circumstances of the case, the Tribunal was justified in law in sustaining the penalty Under Section 271(1)(c) of the I.T. Act in relation to the income of Rs. 6,500 from cold drink business in the name of Smt. Vijai Laxmi Chaurasia? Assessment Years 1974 -75 to 1976 -77: 1. Whether on the facts and in the circumstances of the case, the Tribunal was right in sustaining the penalty on the basis of findings arrived by it in the quantum appeal? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in sustaining the penalty Under Section 271(1)(c) of the I.T. Act, 1961 in relation to the income of Rs. 10,500 from cold drink business in the name of Smt. Vijai Laxmi Chaurasia? 2. Briefly stated, the facts giving rise to the present reference are as follow: The assessee's father late Shri Sripal Chaurasia during his life time was running a beetle shop and had also been selling cigarettes and cold drinks. Since the accounting period corresponding to the assessment year 1970 -71 upto the assessment year 1972 -73, the applicant was assessed at Rs. 5,000/ - for 1970 -71, Rs. 6,000/ - for 1971 -72 and Rs. 7,500/ - for 1972 -73. No books of account were maintained by the assessee. In February, 1972, he was married to one Smt. Vijay Laxmi. He filed his returns of income for the assessment years 1971 -72 to 1974 -75 simultaneously declaring the income of Rs. 6,200/ - for the assessment year 1972 -73, Rs. 6,282/ - for the assessment year 1973 -74 and Rs. 6,446/ - for the assessment year 1974 -75. Original assessment in respect of the assessment years in question were completed on 6.2.1975 at Rs. 7,500/ - for the assessment year 1972 -73, Rs. 8,500/ - for the assessment year 1973 -74 and Rs. 9,000/ - for the assessment year 1974 -75. Returns for the assessment years 1975 -76 and 1976 -77 were filed by the assessee on 31.7.1976 and 22.7.1976 respectively declaring the income of Rs. 8,500/ - for the assessment year 1975 -76 and Rs. 9,000/ - for the assessment year 1976 -77.

(3.) A little later, i.e., on or about 15.9.1976, the assessee filed his revised returns for the assessment years 1974 -75, 1975 -76 and 1976 -77 showing income at Rs. 21,546/ -, Rs. 45,690/ - and Rs. 15,500/ - respectively. The aforesaid revised returns included income from unexplained investment in the bank account and F.D.Rs. etc. to the following extent: Assessment year Deposit in Bank F.D.Rs. Total1974 -75 Rs. 14,200/ - - Rs. 14,200/ -1975 -76 Rs. 15,040/ - Rs. 21,550/ - Rs. 36,590/ -1976 -77 - Rs. 6,500/ - Rs. 6,500/ -