- (1.) THE assessee is an HUF. The assessment year is 1964-65. The assessee filed the return of income on July 29, 1966, declaring income of Rs. 1,971. The assessment originally came to be made on March 17, 1969, whereby the total income was determined at Rs. 92,462. Penalty proceedings under Section 271 (1) (c) of the I. T. Act (hereinafter referred to as " the Act ") were initiated at the time of completing the assessment.
(2.) THE assessee filed an appeal against the assessment order which was accepted and the AAC directed the ITO to reframe the assessment afresh in accordance with law. Consequently, the penalty proceedings under Section 271 (1) (c) of the Act, which were initiated on the basis of his first order were dropped by the IAC.
(3.) THE revised assessment was made and the total income was determined at Rs. 36,360. The assessee's appeal was accepted and the amount of undisclosed income was reduced by Rs. 7,320. The Revenue filed an appeal before the I. T. Appellate Tribunal, Chandigarh Bench (hereinafter referred to as " the Tribunal "), on which the Tribunal restored the addition of Rs. 24,000 in respect of certain credits, which amount was held to have been explained by the AAC.;