COMMISSIONER OF INCOME TAX Vs. SARDAR SINGH S

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, " A " Bench, Calcutta, has referred the following question to us for opinion :

(2.) In the course of examination of the accounts of the assessee for the assessment year 1966-67-, the Income-tax Officer found that the assessee had concealed his income and furnished inaccurate particulars of such income. He, therefore, directed initiation of proceedings under Sec. 271(1)(c) read with Sec. 274 of the Income-tax Act, 1961 (hereinafter called " the Act "), and issued notice to the assessee on Nov. 25, 1968. Thereafter, he referred the matter to the Inspecting Assistant Commissioner as the minimum penalty leviable exceeded Rs. 1,000. The Inspecting Assistant Commissioner issued notice to the assessee under Sec. 274 read with Sec. 271(1)(c) of the Act. The assessee appeared. After hearing him, the Inspecting Assistant Commissioner imposed a penalty of Rs. 5,600, the maximum penalty leviable being Rs. 16,720 and the minimum being Rs. 2,240.

(3.) The assessee preferred an appeal before the Tribunal. It was urged by the assessee before the Tribunal that the penalty proceedings were not properly initiated as the Inspecting Assistant Commissioner was not satisfied on the concealment of income by the assessee during the course of the assessment proceedings.