BASANTA RAM KEDARNATH Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Basanta Ram Kedarnath, the appellant, is a partnership registered under the Indian Partnership Act. Kedarnath Jayaswal, Badri Prosad Shah and Dwarika Prosad Shah at the material time were the partners of the appellant (firm) each having 1/3rd share therein.

(2.) In the assessment year 1962-63, the accounting year ending on December 31, 1961, the appellant was assessed to Income-tax under Section 143(3) of the Income-tax Act, 1961. The order of assessment was made on March 18, 1967, when the Income-tax Officer computed the total income of the appellant at Rs. 30,580 which was allocated to the partners of the appellant according to their respective shares.

(3.) An appeal against the said order of assessment dated March 18, 1967, was made before the Appellate Assistant Commissioner of Income-tax which was allowed in part. A further appeal preferred by the appellant before the Income-tax Appellate Tribunal was pending at the material time. The Inspecting Assistant Commissioner had also levied a penalty of Rs. 31,000 on the appellant on the ground of concealment of income. A separate appeal preferred against the said order of penalty was also pending at the material time.