METAL STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) .

(2.) THE reference in this case arises under the Income Tax Act, 1961. The assessee -firm, in its return for 1974 -75, disclosed an income of Rs. 26,000. The Income Tax Officer, in his order, enhanced the income to Rs. 1,40,860 in that Rs. 1,14,860 was determined to be income from other sources. Further, the following outstandings of Rs. 20,000 in the name of Kashi Prasad Sah, Rs. 40,000 in the name of Mohanlal Jaichandlal, Rs. 14,000 in name of Tikomchand Jain and Rs. 40,000 in the name of Punamchand Ratanlal, Rs. 60,000 in the name of the firm, Assam Metals, Rs. 1,24,000 in the name of Assam Tubes, are not true and, therefore, levied a "protective penalty" of Rs. 1,14,000. The assessee thereupon unsuccessfully filed appeals before the Commissioner of Income Tax and the Tribunal. Finally, at the instance of the assessee, the following question is referred for the opinion of this court:

(3.) THE Calcutta High Court in CIT v. : [1989]178ITR451(Cal) considered a like issue as in the instant case and held :