C I T JAIPUR Vs. A K SHARMA

JUDGEMENT

(1.) IN pursuance of the order given by this Court under Section 256 (2) of the INcome-tax Act, the INcome-tax Appellate Tribunal, Jaipur Bench Jaipur has referred the following questions of law arising out of the order of the Tribunal dated 14-4-1976 for the assessment year 1966-67: - "1. Whether on the facts and in the circumstances of the case, the ITAT misdirected itself in computing the amount of concealed income at Rs. 5,000/- as against Rs. 25,071/- computed by the I. . A. C. and thus in reducing the penalty imposed under sec. 271 (l) (c) of the INcome Tax Act, 1961 to a sum of Rs. 7,500/ -. 2. Whether the learned ITAT was correct in law in holding that the penalty should be imposed on the assessee by computing on the basis of the law as obtained on the date of the assessment order and not on the basis of law as obtained on the date of furnishing of return i. e. 21-5-1966?"

(2.) THE brief facts of the case are that the assessee is a medical practitioner in the Government service. THE return of income was filed on 21-5-1966 showing the total income as Rs. 21,736/- which included Rs. 18,000/- as the income from private practice. THE assessment was completed on 17-6-1968 and the income from private practice was increased from Rs. 18,000/- to Rs. 25,000/-on the ground that the assessee has not maintained any account with regard to his private practice. Subsequently, information came to the knowledge of the Income-tax Officer that the assessee has not disclosed his true income in respect of consultation fees received from the Central Govt. employees and accordingly, proceedings under Section 147 were initiated. It was found that a sum of Rs. 60,571/- has been received by the assessee as the consultation and injection charges from the employees of P. &t Department but the same had not been disclosed in the return submitted. THE assessee admitted that he must not have received more than Rs. 40,000/- from the employees of Post & Telegraph Department and Rs. 2,000/- to 3,000/- from other Central Govt. employees. THE Income-tax Officer estimated the income at a figure of Rs. 65,571/- as receipts from the employees of P & T Department and other Central Govt. employees. A sum of Rs. 6,000/- was allowed in respect of expenses.

(3.) THE Inspecting Assistant Commissioner has taken up the matter with the Post and Telegraph Department to obtain the details of the figure of Rs. 60,571/- and it was informed that the said bills have been weeded out destroyed.