COMMISSIONER OF INCOME TAX Vs. SUN ENGINEERING WORKS PRIVATE LIMITED

JUDGEMENT

(1.) The followling question was formulated by the High Court of Calcutta while granting the certificate of fitness to file these appeals against the judgment of the Division Bench of that Court dated 17th November, 1975 : (reported in 1977 Tax LR 716):

(2.) Respondent in both the appeals is the assessee for the assessment year 1960-61, the assessee filed the return of income on 17th of November, 1960, showing a loss of Rs. 35,418/-. For the assessment year, 1961-62, the return of income was filed on 4th October, 1961, declaring a loss of Rs. 24,314/-. The Income-tax Officer after discussion with the authorised representative of the assessee. Shri A. S. Chowdhary, considered both the returns on 12-12-1962. and in respect of the return for the assessment year 1960-61 recorded on the order sheet that the return filed beyond time. No action is necessary filed "N.D.". For the assessment year 1961-62 the I.-T.O. recorded "the loss return is beyond time. Filed as N.D. The Incometax Officer conveyed to the appellant vide communication dated 12-12-1962.

(3.) It transpires from the record that subsequent to the proceedings as noticed above, the assessee filed a disclosure petition in respect of some Hundi loans and a settlement was arrived at between the assessee and the Revenue as a result whereof the assessee became assessable for the disclosed sum of Rs. 27,000/- for the assessment year 1960-61 and for the sum of Rs.-9,0001/- for the assessment year 1961-62. The Income-tax Officer considered the aforesaid amounts for the two assessment years as 'escaped income'. A notice as required by S. 148 of the Income-tax Act, 1961 (hereinafter, the Act) was issued within the statutory period calling upon the assessee to show cause why the "escaped income" of Rs. 27,000/ - and Rs. 9000/ respectively.