ADDITIONAL COMMISSIONER OF INCOME TAX Vs. MOTISINGH

JUDGEMENT

(1.) THE questions of Jaw referred by the Income-tax Appellate Tribunal, on the direction of this court, are as follows :

(2.) THE reference arises out of penalty proceedings for the assessment year 1964-65. THE assessee is an HUF doing the business in civil engineering contracts. THE income was returned at Rs. 21,571. THE income was assessed finally in appeal at Rs. 40,733. THE assessee did not maintain any books of account. THE IAC in penalty, proceedings held that the assessee had concealed the income within the meaning of the Explanation to Section 271(1)(c) as the income returned was less than 80 per cent. of the income assessed. He also held that the income was being estimated every year in the absence of any books of account and still the assessee persisted in not maintaining the accounts which in fact meant that there was gross or wilful neglect on his part in returning the correct income. THE Tribunal did not, in terms, raise the presumption under Section 271(1)(c). It, however, held that the assessee had not been negligent grossly or wilfully in returning the income, nor was there any question of fraud involved in the case.

(3.) THERE will be no order as to costs of this reference.