COMMISSIONER OF INCOME TAX Vs. SABITRI CHATTERJEE

JUDGEMENT

(1.) This is a reference under Section 256(1) of the I.T. Act, 1961, and it arises out of a penalty proceeding.

(2.) The assessee is a reputed film star and a stage actress. The assessment year is 1960-61. The previous year is the financial year. By rejecting the explanation offered by the assessee in respect of certain receipts, the ITO brought certain sums to tax as stated in the statement of the case. The said assessment was made on July 9, 1964, in which the ITO has made the following endorsement:

(3.) On July 22, 1964, the ITO issued a notice under Section 274 read with Section 271 of the I.T. Act, 1961, and referred the case, under Section 274(2) of the Act, to the IAC on August 12, 1964. The TAG issued the show-cause notice on October 23, 1964, and after hearing the assessee's representative imposed a penalty of Rs. 16,000 on November 5, 1965. The Tribunal has set aside the penalty by holding that the penalty proceeding was not validly initiated and has referred the following question to us :