BHAGWANDAS SHYAMSUNDER Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this case the assessee is a joint Hindu family carrying on the business of cloth at Gaya in the name of Nirmal Ram Hari Prasad. For the assessment year 1949-50, the assessee made a return of the income showing a net loss of Rs. 32,532. While examining the account books of the assessee the INcome-tax Officer discovered that a sum of Rs. 36,300 shown in the cash books was not carried over to the ledger account. The INcome-tax Officer also discovered that certain deposits amounting to Rs. 37,000 were in two banks, namely, the Bengal Central Bank Limited and the Punjab National Bank Limited, in the names of the family members of the assessee. The particulars of the deposits were as follows : <FRM>JUDGEMENT_566_ITR45_1962Html1.htm</FRM>

(2.) BUT these deposits were not shown in the account books of the assessee. The Income-tax Officer held that there was concealment of income and ultimately computed the income of the business of the assessee at Rs. 89,907. The total income of the assessee for the assessment year was computed at Rs. 1,02,072. An appeal was taken to the Appellate Assistant Commissioner against this assessment and the Appellate Assistant Commissioner reduced the total income by a sum of Rs. 5,528. The Appellate Tribunal gave further relief to the assessee by restricting the amount of addition to Rs. 75,000. Thereafter, the Income-tax Officer initiated proceedings against the assessee under section 28(1) (c) of the Income-tax Act. After hearing the explanation of the assessee, the Income-tax Officer levied a penalty of Rs. 42,000. The assessee preferred an appeal before the Appellate Assistant Commissioner but the appeal was dismissed. The assessee took the matter in further appeal to the Appellate Tribunal which partially allowed the appeal and reduced the penalty to a sum of Rs. 33,000.

(3.) FOR these reasons, we answer the question of law referred by the Income-tax Appellate Tribunal against the assessee and in favour of the income-tax department. There will be no order as to costs of this reference.