R K BHARGAWA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application under Section 256(1) of the IT Act, 1961, Tribunal has referred the following questions for the opinion of this Court :

(2.) THE case of the assessee is that assessee was a partner in M/s Ranu Brothers (Contracts) alongwith Shri Rajaram and Shri Rahul Bhargava. He had income from property also. He declared share income form M/s Ranu Brothers (Contracts) at Rs. 35,028. The ITO held that the firm Ranu Brothers (Contracts), which had closed, is not a genuine firm and the income earned in the name of firm M/s Ranu Brothers (Contracts) is income of the assessee and included the entire income from that firm in the hands of the assessee, which amounted to Rs. 51,378. The total income of the assessee assessed in the asst. yr. 1969 -70 was at Rs. 71,921. As assessee has concealed the income by not furnishing the correct income, the penalty under Section 271(1)(c) was initiated and penalty of Rs. 16,500 has been imposed.

(3.) IN appeal before the Tribunal, the Tribunal also confirmed the penalty imposed by the AO. The Tribunal while following the order in the case of same assessee, for the asst. yrs. 1970 -71 and 1971 -72 confirmed the penalty imposed by the ITO and upheld by the Dy. CTT (A).