COMMISSIONER OF INCOME TAX Vs. JAMMUNA PRASAD SAH

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the I.T. Act, 1961 (hereinafter to be referred to as "the Act"), by the Income-tax Appellate Tribunal, Patna Bench "B", Patna, for opinion on the following question of law :

(2.) THE case relates to the assessment year 1966-67. THE assessee is a HUF and derives income from truck plying, cloth business and commission from Government as its grain stockist. THE ITO in the course of the assessment proceedings found that the assessee had received commission from the Government as grain stockist amounting to Rs. 16,604 which was brought to tax by the ITO and the same was confirmed by the AAC in appeal. After the assessment was over, the matter was referred to the IAC for purposes of levy of penalty as the amount of penalty leviable exceeded Rs. 1,000. THE IAC issued a show-cause notice to the assessee in regard to which certain submissions were made with which he did not agree. For the reasons mentioned in his order dated December 1, 1971, a copy of which is marked annexure "A" to the statement of the case, penalty of Rs. 5,256 was levied under Section 271(1)(c) read with Section 274(2) of the Act.

(3.) THE case is, accordingly, decided in favour of the Revenue and against the assessee. On the facts and in the circumstances of the case, there shall be no order as to costs.