COMMISSIONER OF INCOME TAX Vs. AJANTA TEXTILES

JUDGEMENT

(1.) UNDER s. 256(1) of the IT Act, the Tribunal has referred the following question of law arising out of its order dt. 13th Jan., 1986 in respect of asst. yr. 1975-76 :

(2.) THE brief facts of the case are that, the assessee filed a return of income at a figure of Rs. 15,389. Various additions were made while finalising the assessment under s. 143(3) on 29th Jan., 1977 and the total income assessed was Rs. 74,830. This addition includes a figure of Rs. 9,540 which was on account of unexplained credit entry in the name of Shri Hastimal. THE addition of Rs. 9,540 was confirmed by the AAC. THE matter was challenged before the Tribunal by the assessee, and the Tribunal set aside the order of the AAC, certain directions were given. THE AAC passed the order again on 26th June, 1980, and upheld the addition of Rs. 9,540. Relief was given on other points. Penalty proceedings under s. 271(1)(c) were initiated. It was submitted that the assessee was not provided with proper opportunity. THE ITO found that number of opportunities were given at the time of assessment and at the time of appellate proceedings. THE contention of the assessee was rejected and penalty of Rs. 14,310 was levied. Before the AAC, it was submitted that the ITO passed the order on 20th Dec., 1980 while the hearing was fixed on 22nd Jan., 1981 and the order was passed before considering the reply. This contention was rejected and it was held that the assessee cannot escape the charge of concealment. THE penalty, however, was reduced from Rs. 14,310 to Rs. 9,540.