COMMISSIONER OF INCOME TAX Vs. ELECTRIC CONSTRUCTION AND EQUIPMENT COMPANY LIMITED

JUDGEMENT

(1.) THE CIT, by this application under S. 256(2) of the INCOME TAX ACT, 1961, prays that the Tribunal be directed to state a case and refer the following three questions of law pertaining to the asst. year 1971 -72 for the opinion of this Court :

(2.) THE assessee is a public limited company engaged in the manufacture of certain electrical goods which it supplies mainly to the State Electricity Boards. It claimed certain deductions as commission payments.

(3.) THE assessee appealed to the CIT and contended that the initiation of proceedings under S. 147 (a) of the IT Act, was invalid ; it also challenged the finding regarding disallowance of the sum of Rs. 6,80,850. The CIT held that the assessee had not disclosed fully and truly all material facts and as a result of the non -disclosure, income chargeable to tax had escaped assessment. Consequently, it upheld the initiation of proceedings under S. 147(a) of the IT Act. The CIT also confirmed the disallowance of the entire amount of Rs. 6,80,850.