COMMISSIONER OF INCOME TAX Vs. K C BEHERA

JUDGEMENT

(1.) ON an application under Section 256(2) of the I.T. Act of 1961 (hereinafter referred to as ' the Act') made by the revenue, this court directed the Income -tax Appellate Tribunal, Cuttack Bench, to state a case and refer the following question for the opinion of the court:

(2.) THE assessment years in question are 1960 -61 and 1965 -66. The assessee is a partnership firm deriving income from business in grocery. For the assessment year 1960 -61, the assessment was completed by adopting an income of Rs. 48,255. The assessment was reopened under Section 147 of the Act and the ITO made the reassessment treating the income to be Rs. 68,255 and the enhancement of Rs. 20,000 was on the basis of income from undisclosed sources. A cash credit of that amount appearing in the assessee's books in the name of one, M/s. Harnarayan Prabhudayal of Calcutta, was not accepted to be a cash credit. The ITO started a penalty proceeding under Section 271(1)(c) of the Act and the IAC imposed a penalty of Rs. 12,900.

(3.) A Bench of this court examined the matter at length and by the decision dated September 13, 1973, in : [1976]103ITR479(Orissa) (CIT v. K. C. Behera) came to hold :