COMMISSIONER OF INCOME TAX Vs. SURAJ BHAN

JUDGEMENT

(1.) FOLLOWING question of law has been referred for our opinion by the Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dt. 31st Dec., 1976 passed in ITA Nos. 263 and 264 of 1975 -76, in respect of asst. yrs. 1969 -70 and 1970 -71 : Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the -penalty of Rs. 25,515 and Rs, 45,680 imposed by the IAC under Section 271(1)(c) of the IT Act, 1961 for asst. yrs. 1969 -70 and 1970 -71 respectively ?

(2.) THE assessee is a wine contractor. He derives income from property, personal business and share income. He filed his return of income declaring loss of Rs. 8,410. In the balance sheet, cash balance and personal capital were shown as Rs. 3,090 and Rs. 29,341 for the asst. yr. 1969 -70. For the asst. yr. 1970 -71, return of income was filed declaring the income at Rs. 11,451, while in balance sheet, cash and credit balance in the capital account were shown as Rs. 2,248 and Rs. 43,963. A search took place in the premises of the assessee on 28th Nov., 1970 and certain books of account were seized, apart from cash amounting to Rs. 33,000. The assessee revised his balance sheet, raised cash balance, revised other entries and thereafter filed revised returns with the Department.

(3.) WE have heard learned Counsel for the Revenue. None appeared for the assessee.