COMMISSIONER OF INCOME TAX Vs. BIJU PATNAIK

JUDGEMENT

(1.) On an application made by the revenue under Section 256(2) of the Income-tax Act of 1961 (hereinafter referred to as " the Act"), this court directed the Income-tax Appellate Tribunal, Cuttack Bench, to state a case and refer the following question of law for its opinion and the Tribunal pursuant to the said direction has now stated the case and referred the said question :

(2.) The relevant assessment year is 1964-65 corresponding to the previous year ending on March 31, 1964. The Income-tax Officer included the following items as the assessee's income though the same had not been returned :

(3.) Penalty proceedings under Section 27I(1)(c) of the Act w.ere initiated and the Inspecting Assistant Commissioner, after hearing the assessee's expla nation, imposed a penalty of Rs. 60,000.