COMMISSIONER OF INCOME TAX Vs. GUPTA M K

JUDGEMENT

(1.) DR. M.K. Gupta, the assessee, was employed as a physician in P.L. Sharma Hospital, Meerut. During the relevant assessment year 1962-63, he was an authorised medical attendant for Central Government employees. He had private practice also. On 28th August, 1962, he filed a return in Form No. 4 disclosing his total income as Rs. 21,680 out of which a total sum of Rs. 18,000 was disclosed as the income from profession. The department received information that the assessee's income was much more. The Income-tax Officer issued a notice under Section 274(1) of the Income-tax Act, 1961, on 28th September, 1962. The assessee then filed a return in Form No. 2 on 29th November, 1962. In this return he disclosed a total income of Rs. 43,930, out of which Rs. 40,000 was declared as income from private practice.

(2.) THE Income-tax Officer computed his total income at Rs. 67,944, which included a sum of Rs. 64,014 as income from private practice. In appeal, the Appellate Assistant Commissioner reduced the taxable income by Rs. 9,000. In further appeal, the Tribunal reduced the income from private practice to Rs. 40,000.

(3.) AT the instance of the department, the Tribunal has referred the following question for our opinion :