Sabyasachi Mukharji, J. - (1.) The assessment year involved is 1962-63. The question referred to us is as follows: " Whether, on the facts and in the circumstances of the case, the penalty under Section 271(1)(c) of the Income-tax Act, 1961, was leviable on the assessee ? "
(2.) The facts of the case were as follows : The ITO, while computing the total income of the assessee, added back an amount of Rs. 5,33,459 to the total income of the assessee. Simultaneously, he initiated penalty proceedings under Section 271(1)(c) of the 1961 Act and as minimum penalty imposable exceeded Rs. 1,000, he referred the matter to the IAC.
(3.) Analysing the total addition of Rs. 5,33,459, the IAC came to the conclusion that the assessee had concealed particulars of its income or furnished inaccurate particulars in respect of interest and brokerage on hundi loans amounting to Rs. 87,533. He also came to the conclusion that the assessee had concealed its income to the extent of Rs. 3,15,814 in respect of the stocks shown in the balance-sheet at a figure substantially lower than what was pledged with the bank for obtaining an overdraft. Accordingly, he imposed a penalty of Rs. 54,000.;