Ajit Kumar Sengupta, J. - (1.) The assessee, Birla Cotton Spinning & Weaving Mills Ltd., has mills at Delhi and ginning and pressing factories in Malout (Punjab), Kesrisingapur (Rajasthan), Fatehabad and Sangaria (Haryana). The assessment years concerned are 1966-67 and 1968-69 for which the previous years ended on March 31, 1966, and March 31, 1968, respectively.
(2.) The Income-tax Officer served demand notice under Section 210 of the Income-tax Act, 1961, calling upon the assessee to pay Rs. 24,92,216 for the first year under reference and the assessee paid, as per its estimate, Rs. 2,50,897. For the second year under reference, the Income-tax Officer demanded Rs. 5,34,332 under Section 210 of the Income-tax Act, 1961, and the assessee paid, as per its estimate, Rs. 3,35,000. The facts revealed for the first year under reference are that the assessee filed an estimate showing an income of Rs. 11.15 lakhs on August 30, 1965. It filed another estimate on November 23, 1965, showing an estimated income of Rs. 7,00,000. It substituted these estimates by another estimate on March 9, 1966, declaring an estimated income of Rs. 6.8 lakhs which consisted of business income of Rs. 3.40 lakhs and dividend income of Rs. 3.40 lakhs. The assessee submitted a return declaring income from property at Rs. 26,754, business income of Rs. 9,80,431 and dividend income of Rs. 3,38,937. Income was assessed by the Income-tax Officer for the first year under reference only by enhancing the business income from Rs. 9,80,431 to Rs. 10,01,752. The Income-tax Officer started penalty proceedings against the assessee under Section 273 of the Act.
(3.) For the second year under reference, the assessee filed an estimate under Section 212 of the Act for Rs. 3,35,000 whereas income returned was Rs. 14,86,000. After giving effect to the appellate order, the income was finally assessed at Rs. 16,25,636. The Income-tax Officer started penalty proceedings against the assessee in terms of Section 273 of the Act. The income which was finally determined was more than the income returned by the assessee.;