LAWS(ALL)-1978-7-46

COMMISSIONER OF INCOME TAX Vs. ZEEKOO SHOE FACTORY

Decided On July 19, 1978
COMMISSIONER OF INCOME-TAX Appellant
V/S
ZEEKOO SHOE FACTORY Respondents

JUDGEMENT

(1.) THIS reference raises an interesting question in respect of the levy of penalty.

(2.) THE assessee is a registered firm. It carries on business in shoes. For the assessment 1968-69, the assessee filed a return of income on 31st October, 1968, disclosing an income of Rs. 65,691. THE ITO included Rs. 71,834.95 as income from other sources in respect of credit balance existing in the assessee's account books in respect of six other firms. This addition was reduced on appeal. On further appeal, the Tribunal upheld the inclusion in relation to two cash credit items, namely :--

(3.) THE assessee appealed to the Tribunal against the order imposing penalty.