- (1.) The assessment of the petitioner, Ram Charidra Sarda for the assessment year 1963-64 was completed by the Income-tax Officer, "B" Ward, District 1(1), Calcutta, on the 31st March, 1965.
(2.) On the same day, i.e., 31st March, 1965, the aforesaid Income-tax Officer issued a notice under Section 274 of the Income-tax Act, 1961, (hereinafter referred to as the Act), read with Section 271 thereof. This notice is material for our purpose and is set out hereinbelow: " NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME-TAX ACT, 1961 No. PW/R. 340/B. Income-tax Officer, Dt. I(I), Cal. Date: 31-3-1965 To Sri Ram Chandra Sarda, 4, Dayahatta Street, Calcutta. Whereas, in the course of proceedings before me for the assessment year 1963-64, it appears to me that you have concealed the particulars of your income or deliberately furnished Inaccurate particulars of such income and whereas the 'penalty proceedings have to be referred to the Inspecting Assistant' Commissioner of Income-tax according to Sub-section (2) of Section 274 of the Income-tax Act, 1961; you are hereby informed that the case for levy of a penalty under Clause (c) of Sub-section (1) of Section 271 is being referred by me to the Inspecting Assistant Commissioner of Income-tax, Range XII (Cal.). Further proceedings in regard to the leavy of a penalty will take place before the said Inspecting Assistant Commissioner of Income-tax as provided in Sub-section (2) of Section 274."
(3.) On the 24th February, 1967, i.e., after nearly two years from the com pletion of the assessment proceedings, the Inspecting Assistant Commissioner addressed the following notice to the petitioner: " NOTICE UNDER SECTION 274(2) READ WITH SECTION 271 OF THE l INCOME-TAX ACT, 1961 Office of the Inspecting Assistant Commissioner or Income-tax. Dated: 24-2-1967. To Sri Ram Chandra Sarda, 4, Dayahatta Street, Calcutta. Whereas the Income-tax Officer, 'B' Ward, District 1(1), has, under Sub-section (2) of Section 274 of the Income-tax Act, 1961, referred your case to me in connection with the penalty proceedings under Clause (c) of Sub-section (1) of Section 271, and whereas it appears to me that you have concealed the particulars of your income or deliberately furnished inaccurate particulars of such income for the assessment year 1963-64. You are hereby requested to appear before me at 11 a.m. on 2-3-1967 and show cause why an order imposing a penalty on you should not be made under Section 271(1)(c) of the said Act. If you do not wish to avail yourself of this opportunity of being heard in person or through authorised representative you may show cause in writing on or before the said date which will be considered before any such order is made under Section 271(1)(c).";