JAI PARKASH GUPTA Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) FOR the assessment year 1963-64, the taxable income was computed at Rs. 14,223 including an amount of Rs. 12,421 which was found to the assessee's credit in the books of Metal Products of India. Since the assessee could not explain the amount, the same was surrendered by him and was shown in the return filed for the assessment year in question.

(2.) LATER on, it was discovered that there were credits to the extent of Rs. 56,416. 83 in the books of Northern India Motor Parts Manufacturing Co. , Chandigarh, in the joint account of the assessee, Jai Bhagwan Gupta and Smt. Kaushlya Devi. Proceedings under Section 147 (a) of the Income-tax Act, 1961 (hereinafter called "the Act"), for non-disclosure, fully and truly, of all material facts necessary for assessment of income chargeable to tax having escaped assessment, were initiated. In spite of issue of notice under Section 148 of the Act, the assessee did not file a revised return. The matter of reassessment came up before the Income-tax Appellate Tribunal, Delhi-camp, Chandigarh, and vide order dated July 20, 1977, the order of the Appellate Assistant Commissioner adding Rs. 7,667 to the income of the assessee was upheld after recording the following finding :

(3.) ON a reference application filed by the assessee, the Tribunal has referred the following question for our opinion :