Chandrachud, J. - (1.) The respondent in these two appeals is a registered firm constituted by two brothers and their sons. It runs a Restaurant called Chandravilas Hotel in Ahmedabad. For the assessment year 1967-68, it filed a return on September 2, 1967, disclosing an income of Rs. 34, 131. It was, however, assessed for that year on a total income of Rs. 1,65,422. For the assessment year 1968-69, it returned an income of Rupees 68, 841 but was assessed on a total income of Rs, 2,80,457. The two assessment years are the subject-matter, respectively, of these two appeals.
(2.) Since the income returned by the respondent was less than 80 per cent of the income which was assessed, the Income-tax Officer, taking the view that the respondent had concealed the particulars of its income, initiated penal proceedings under S. 271(1)(c) of the Income-tax Act, 1961. As the minimum penalty exceeded Rs. 1,000, the I.T.O. referred the matter to the Inspecting Assistant Commissioner under S. 274 of the Act.
(3.) After considering the facts noted by the I.T.O. in his assessment orders and after hearing the respondent, the Inspecting Assistant Commissioner passed an order on November 13, 1969 levying a penalty of Rs. 20,000 on the respondent in respect of the return filed for the assessment year 1967-68. A similar order was passed on December 9, 1970 levying a penalty of Rs. 2,12, 000 for the assessment year 1968-69.;