COMMISSIONER OF INCOME TAX Vs. SHEIKH MUNIR

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jabalpur Bench, Jabalpur, has, on a direction being issued by this court on an application under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), referred the following question of law to this court for its opinion :

(2.) THE facts in a nutshell necessary for answering the aforesaid question are that the assessee was the managing director of M/s. Sheikh Rasool Motor Transport Co. (Pvt.) Ltd., Jabalpur. For the assessment year in question, namely, 1964-65, he riled his return showing a total income of Rs. 3,300. However, an order of assessment was passed computing the total income of the assessee at Rs. 27,503. In this order, a sum of Rs. 24,203 was added as income from undisclosed sources. A penalty in the sum of Rs. 24,300 was also imposed on the assessee under Section 271(1)(c) of the Act. On an appeal riled by the assessee, however, the Tribunal set aside the order of imposition of penalty.