H K TRADERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal, Jabalpur Bench, Jabalpur has, at the instance of the assessee (applicant), referred the following question of law arising out of the Tribunal's order passed in ITA No. 260/Jab/1995, dt. 31st Dec., 1987:

(2.) THE assessee is a registered firm having income from purchase and sale of electrical goods on semi-wholesale basis. The assessee was assessed to income-tax in the year of assessment 1979- 80 for which the assessee had filed return declaring income of Rs. 53,256. The assessee, later, filed a revised return on 18th Sept., 1979 indicating total income of Rs. 61,853. The assessment was completed on 21st Feb., 1989 on a total income of Rs. 62,853 with minor variation in the income returned in the revised return. The ITO initiated penalty proceedings under S. 271(1)(c) of the IT Act on the basis of the difference of income declared in the original return and the revised return and eventually a penalty of Rs. 10,000 was imposed. The matter was carried before the AAC, who cancelled the penalty. On appeal being filed against the order of the ACC before the Tribunal, the Tribunal reversed the order of the AAC and restored the penalty order of the ITO. The assessee filed an application before the Tribunal under S. 256(1) for making statement to this Court and referring the question of law formulated by the assessee. The Tribunal has, however, found the above stated question as arising out of the order of the Tribunal and has referred the same to this Court.

(3.) WE have heard the learned counsel for the parties and perused the record.