RUKMANI BAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE applicant seeks reference under s. 256(2) of the IT Act, 1961 of the following questions stated to be arising out of the order of the Tribunal pertaining to the asst. yrs. 1975-76 & 1976-77 :

(2.) THE assessee did not file the returns on assumption that her income was below the taxable limit. THE AO completed the assessment and found that the income of the assessee was above the taxable limit. THE assessee, therefore, filed an appeal in respect of the said assessment years and the Tribunal also held that the income was above the taxable limit. Before the taxing authority and the Tribunal, the case of the assessee was that the returned income was much below the taxable limit and the additions which were finally confirmed by the Tribunal were on the basis of unexplained investment in the immovable properties. THE AAC after discussing the legal position had observed that the income of the assessee had already been confirmed by the Tribunal and that it was much above the taxable limit. THE penalties under s. 271(1)(a) and 273(b) of the IT Act were also levied. However, the ITO was directed to recompute the quantum of penalty under s. 271(1)(a) for the assessment years in question and as regards penalty under s. 273(b), it was observed that ITO had imposed minimum penalty.

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