RAHMAN M A Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON being moved by the assessee, this court directed the Income-tax Tribunal, Cuttack Bench, to state a case and refer the following question for the opinion of the court:

(2.) ASSESSEE, an individual, is a contractor by profession and during the financial year ending with March 31, 1964 (assessment year 1964-65), he received payments. In his returns of income filed on May 11,1964, the assessee disclosed a profit of Rs. 20,000 from business by estimating the profit at 12 1/2% on a total receipt of Rs. 1,60,520. On July 31, 1964, assessment was completed under Section 143(3) of the I.T. Act of 1961 (hereinafter referred to as "the Act") adopting Rs. 20,065 as business income, on the basis of total receipt of Rs. 1,60,520. On September 24, 1964, the ITO gathered from information supplied by the concerned executive engineer that the total receipt by the assessee was Rs. 3,75,953 and not Rs. 1,60,520. Thereupon the assessment was reopened and, in response to a notice under Section 148 of the Act, the assessee filed a fresh return on July 9, 1965, showing business income of Rs. 20,000 as before but explained as follows :