SETHI PEN STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The material facts on record as found and admitted are, inter alia, that Sethi Pen Stores, a partnership firm, the assessee, proposed to enter into a settlement with the Income-tax Department and applied before the Commissioner of Income-tax, West Bengal-II, on January 25, 1968, offering for taxation a sum of Rs. 79,500 which according to them represented genuine hundi loans but could not b6 supported by evidence; It was proposed to spread over the said amount for the accounting years 1962, 1963, 1964 and 1965.

(2.) An order was passed on the said application by the Commissioner of Income-tax on December 29, 1970, as follows:

(3.) Pursuant to the aforesaid, further assessments were made on the assessee for the said assessment years 1961-62 to 1965-66 and tax and penalty were levied. In the assessment year 1972-73, the accounting year ending on December 31, 1971, the assessee in terms of the settlement introduced in its accounts a sum of Rs. 1,13,471, half of the said amount, namely, Rs. 56,735.50, being credited to each of the partners.