COMMISSIONER OF INCOME TAX Vs. CHANDI PRASAD KHAITAN

JUDGEMENT

(1.) THIS court directed the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (hereinafter referred to as "the Tribunal"), under Section 256(2) of the Income-tax Act, 1961 (for short "the Act") to draw up the statement of the case and to refer the following question of law arising out of the order of the Tribunal dated January 14, 1975, in respect of the respondent assessee for the assessment year 1947-48 :

(2.) THE facts as stated are that the assessee, Chandi Prasad Khaitan, submitted his return for the assessment year 1947-48, but it was found that he had concealed his income of Rs. 1,75,000. THE assessee had a bank account in the Fountain Branch of Punjab National Bank Limited, Delhi, wherein a sum of Rs. 1,00,000 was deposited on April 1, 1947. He could not give a satisfactory explanation for this deposit. First, he made an attempt to deny the existence of this bank account in his name, but, subsequently, he admitted that his friend, P. C. Poddar, had remitted the money to him from Calcutta and this amount was returned to him. Shri P. C. Poddar was examined and he admitted having sent the money. THE Tribunal did not accept the explanation of the assessee and held this amount to be his income from undisclosed sources.

(3.) IN P. M. A. P. Ayyamperumal Nadar v. CIT [1974] 97 ITR 161 (Mad), it was held that it is not essential that there should be fresh material at the stage of penalty proceedings to establish that there has been deliberate concealment of income and that the materials gathered at the stage of assessment do not have to be altogether eschewed. The original assessment proceedings are a good item of evidence in the penalty proceedings as well, but it was held that the penalty could not be levied solely on the basis of the finding given in the order of assessment.