COMMISSIONER OF INCOME TAX Vs. GIRISH KUMAR KOTHARI

JUDGEMENT

(1.) IN the present reference application we have been called upon to answer the following question :

(2.) THE proceedings relate to the assessment year 1953-54. THE assessee has filed its original return disclosing total income at Rs. 24,343. Later on, pursuant to search and seizure made in the premises of the assessee on December 16, 1966, reassessment proceedings were initiated and a notice under section 148 of the Income-tax Act, 1961 (hereinafter the new Act only), was issued on January 4, 1969. THE assessee filed its return showing the same income as returned earlier. In the assessment proceedings, an addition of Rs. 23,907 was sustained up to the Tribunal as income from undisclosed sources based on unexplained cash credits. Because of those additions, penalty proceedings under section 271(1)(c) were initiated and Rs. 23,907 was imposed as penalty for concealment of income by the Inspecting Assistant Commissioner. On appeal, the Tribunal set aside the said order of penalty by taking the view that merely because the assessees explanation was rejected or because sufficient evidence had not been produced to prove the claim of the assessee that the amount in question did not represent the income of this year, it could not be said that the Department had discharged its onus of proving that the amount in question represented the assessees concealed income. THE Tribunal also held that no cogent material has been brought on the record by the Department to establish beyond doubt that the amount in question did represent the assessees income which was assessable in the assessment year 1953-54.

(3.) SECTION 297, Repeals and savings. - (1) The Indian Income-tax Act, 1922 (11 of 1922), is hereby repealed.