COMMISSIONER OF INCOME TAX Vs. HARLAL MANNULAL

JUDGEMENT

(1.) THE Tribunal, Indore Bench, Indore, has referred the following two questions to this court for its opinion :

(2.) THE facts in a nutshell which are necessary for answering the aforesaid two questions are that during the assessment year 1973-74, the asses-see filed a return declaring a total income of Rs. 4,678. However, the assessment was completed on a total income of Rs. 49, 403. THE explanation given by the assessee except with regard to Rs. 20,000 was accepted. With regard to the sum of Rs. 20,000, the finding of the Tribunal in the assessment proceedings was that the assessee has not explained satisfactorily the non-disclosure of the said amount in the return. Proceedings for imposition of penalty were also initiated against the assessee and the Inspecting Assistant Commissioner, vide his order dated February 3, 1978, imposed a sum of Rs. 20,000 as penalty on the assessee on the finding that he was guilty of concealment of income as contemplated by Section 1 271(1)(c) of the Income-tax Act, 1961 ("the Act"). This order , however, was reversed by the Tribunal. In reversing the order of the Inspecting Assistant Commissioner, the relevant finding which was recorded by the Tribunal, reads as hereunder :

(3.) HAVING heard learned counsel for the parties, we are of the opinion that there is substance in the submission made by counsel for the Department. The amendment which was made in Section 1 271 by the Finance Act, 1964, may be stated. In Clause (c) the word "deliberately" occurring after the words "particulars of his income or" was omitted. The following Explanation to Sub-section (1) was inserted :