COMMISSIONER OF INCOME TAX Vs. LAXMI AUTO STORES

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has stated a case and referred the following question for determination of this court under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") at the instance of the revenue:

(2.) THE year of assessment is 1964-65. THE assessee had returned an income of Rs. 43,023.23 in its return filed on October 1, 1964. THE assessing officer found two cash credits of Rs. 10,000 each and treated them to be income of the assessee from undisclosed sources being not satisfied about the genuineness of the transactions. THE additions were upheld by the Appellate Assistant Commissioner as also the Tribunal and became final. In the meantime, proceedings under Section 271(1)(c) read with Section 274 of the Act were initiated and the Inspecting Assistant Commissioner by order dated February 26, 1969, imposed a penalty of Rs. 15,000, THE assessee appealed to the Tribunal. THE Appellate Tribunal held :