RADHESHYAM AGARWALLA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application for a writ of certiorari for quashing the order imposing penalty under Section 271(1)(c) of the Income-tax Act of 1961 (hereinafter referred to as the "Act") by the Inspecting Assistant Commissioner as upheld in revision by the Commissioner of Income-tax.

(2.) THE petitioner is an assessee under the Act. For the assessment year 1967-68, he, was assessed to income-tax by the Income-tax Officer at Titilagarh. THE Income-tax Officer found two cash credits of Rs. 4,250 and Rs. 12,000 in the names of Banwarilal Agrawala and Tulsiram Agrawala, respectively. He did not accept the explanation of the assessee and added those amounts as income from other sources. THE order of assessment was passed on October 17, 1970, and he directed a proceeding under Section 271(1)(c) of the Act to be initiated. In due course, the penalty matter was referred to the Inspecting Assistant Commissioner of Sambalpur under Section 274(2) of the Act. On January 24, 1973, the Inspecting Assistant Commissioner issued a notice to the petitioner fixing the matter to February 15, 1973, for hearing. On 12th of February 1973, counsel for the petitioner asked for an adjournment and the matter was adjourned to March 9, 1973, and not March 8, 1973, as pleaded by the petitioner. A written explanation was filed on behalf of the petitioner. On 16th of March, 1973, on a consideration of the explanation, the Inspecting Assistant Commissioner levied penalty of Rs. 16,250. Two remedies were open to the assessee against the levy of penalty--an appeal to the Income-tax Appellate Tribunal under Section 253(1)(b) of the Act or a revision before the Commissioner of Income-tax under Section 264(1) of the Act. Petitioner did not avail of the remedy by way of appeal and moved the Commissioner of Income-tax invoking his revisional powers. By his order dated 38th of June, 1974, the Commissioner refused to interfere in the matter and upheld the imposition of penalty. This application for certiorari is directed against the imposition of penalty as upheld in revision.