- (1.) IN this reference under Section 256 (1) of the Income-tax Act, 1961 (hereinafter called " the Act "), the Income-tax Appellate Tribunal, Amritsar Bench, has referred the following question to us for opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of Section 271 (1) (iii) as existing before its amendment with effect from April 1, 1968, would be applicable to the present case ? "
(2.) DURING the course of assessment proceedings for the assessment year 1963-64 of M/s. Ram Singh Harmohan Singh, Amritsar (hereinafter referred to as " the assessee "), the ITO included towards the total income of the assessee the following amounts which appeared as cash credits in the books of accounts of the assessee : Rs. (i) M/s. Amir chand Moti Ram 42,000 (ii) M/s. B. Mohan Singh and Sons 20,000 (iii) Interest in the name of M/s. Amir chand Moti Ram 2,075
(3.) THE said officer issued penalty notice under Section 271 (1) (c) of the Act for concealment of income and since the minimum penalty imposable exceeded a sum of Rs. 1,000, he referred the case to the IAC of Income-tax under Section 274 (2) of the Act. On appeal, the AAC reduced the addition in the account of M/s. Amir Chand Moti Ram to a sum of Rs. 17,000 but maintained the addition of Rs. 20,000 in the account of M/s. B. Mohan Singh and Sons and the addition of interest amounting to Rs. 2,075 in the account of M/s. Amir Chand Moti Ram.;