SHRIPATI SINGHANIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Inspecting Assistant Commissioner, Kanpur, imposed on the assessee a penalty in the sum of Rs. 59,476, being the amount of income concealed, for the assessment year 1968-69. THE concealed income consisted of two items. One was dividend income of Rs. 24,750. This amount was declared as dividend by Messrs. Straw Products Ltd., Bhopal. THE declaration was made on June 29, 1966, and the warrant of dividend that was issued was dated August 8, 1967. THE assessee did not maintain regular accounts. He, however, maintained a memorandum book in which he entered this dividend income on March 13, 1969. THE assessee's accounting year for 1968-69 ended on March 28, 1968. It is thus evident that the declaration of dividend was made during the accounting year relevant to the assessment year 1968-69. THE warrant was also issued within that year.

(2.) THE other item related to special remuneration received by the assessee as director of Messrs. J. K. Industries (Private) Ltd., Kanpur. THE company, by a resolution dated September 19, 1967, sanctioned a special remuneration of Rs. 34,726 to the assessee. This remuneration was actually paid to the assessee on April 15, 1968.

(3.) THE Income-tax Officer reopened the assessment for the assessment year 1968-69 and brought both these items to tax for that year.