ADDITIONAL COMMISSIONER OF INCOME TAX Vs. GEM PALACE

JUDGEMENT

(1.) THIS is an application by the Additional Commissioner of Income-tax, Rajasthan under Section 256(2) of the Income-tax Act. 1961, praying that the Income-tax Appellate Tribunal, Jaipur Bench, may be directed to state a case and refer the following question to this court:

(2.) ON appeal by the assessee, the Appellate Assistant Commissioner reduced the total income of the assessee to Rs. 66,401. As the returned income was less than 80% of the assessed income penalty proceedings under Section 271(1)(c) 6f the Income-tax Act, 1961 (hereinafter referred to as "the Act"), were initiated against the assessee. The Income-tax Officer being of the view that the minimum penalty leviable exceeded Rs. 1,000, referred the matter to the Inspecting Assistant Commissioner of Income-tax, Jaipur Range I, who levied a penalty of Rs. 13,000.