Dipak Kumar Sen, J. - (1.) M/s Oriental Rubber Works, the assessee, filed its return of income for the assessment year 1961-62, on or about September 19, 1962. On or about February 19, 1965, the income-tax authorities searched the office and factory premises of the assessee and seized certain books and documents under the provisions of the Income-tax Act.
(2.) By an order dated March 25, 1966, the Income-tax Officer, "F" Ward, District IV(3), Calcutta, assessed the income of the assessee for the said assessment year under Section 43 of the Income-tax Act, 1961, computing the total taxable income at Rs. 10,86,483.
(3.) The Income-tax Officer also found that the assessee had concealed its income and issued a notice under Section 274 read with Section 271 of the Income-tax Act, 1961, as follows: Dated: March 24, 1966. "M/s. Oriental Rubber Works, 171A, Mahatma Gandhi Road, Calcutta. Whereas in the course of proceedings before me for the assessment year 1961-62, 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 XIV, Calcutta. Further proceedings in regard to the levy of penalty will take place before the said Inspecting Assistant Commissioner of Income-tax as provided in Sub-section (2) of Section 274. (Sd.)(S.B. Ghosh) I.T.O., 'F' Ward, District IV(3) Calcutta. Dated: 13-4-1967. No. IV(3)/306-O/F. Forwarded to the Inspecting Assistant Commissioner, Range XIV, Calcutta, for information and necessary action. Necessary particulars are given in a separate sheet.";