COMMISSIONER OF INCOME TAX Vs. SABITRI CHATTERJEE
LAWS(CAL)-1976-1-26
HIGH COURT OF CALCUTTA
Decided on January 14,1976

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
SABITRI CHATTERJEE Respondents




JUDGEMENT

Deb, J. - (1.)This is a reference under Section 256(1) of the I.T. Act, 1961, and it arises out of a penalty proceeding.
(2.)The assessee is a reputed film star and a stage actress. The assessment year is 1960-61. The previous year is the financial year. By rejecting the explanation offered by the assessee in respect of certain receipts, the ITO brought certain sums to tax as stated in the statement of the case. The said assessment was made on July 9, 1964, in which the ITO has made the following endorsement:
"Issue a notice under Section 274 to the assessee to explain why penalty should not be imposed under Section 271(1)(a) for concealment of the income assessed under other sources, under house property and professional income, concealed earlier."

(3.)On July 22, 1964, the ITO issued a notice under Section 274 read with Section 271 of the I.T. Act, 1961, and referred the case, under Section 274(2) of the Act, to the IAC on August 12, 1964. The TAG issued the show-cause notice on October 23, 1964, and after hearing the assessee's representative imposed a penalty of Rs. 16,000 on November 5, 1965. The Tribunal has set aside the penalty by holding that the penalty proceeding was not validly initiated and has referred the following question to us :
"Whether, on the facts and in the circumstances of the case, the proceedings for imposition of penalty could be said to have been initiated in the course of the assessment proceedings within the meaning of Section 275 of the I.T. Act, 1961 ?"

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