Judgment Text

1960 P T D 972 1960 P T D 972 [Privy Council] Present : Lords Simonds, Uthwatt and Sir John Beaumont Malik DAMSAZ KHAN‑Appellant Versus COMMISSIONER OF INCOME‑TAX, PUNJAB AND N.‑W.F. PROVINCES‑Respondent Privy Council Appeal No. 100 of 1945, decided on 17th June 1947 from Peshawar. Income‑tax Act (XI of 1922) ----S. 22 (2)‑Return‑Not correct or complete, giving income merely approximately‑Income tax Officer could accept return as valid and proceed to assess under S. 23 (1) or 23 (3)‑Appeal against assessment‑Penalty imposed under S. 28 (1)‑Validity‑Income‑tax Act (XI of 1922), S. 23 (3) & 28 (1) : A I R 1945 Pesh. 18 affirmed. C. Bagram and J. M. R. Jayakar for Appellant. Solicitors : Hy. S. L. Polak & Co. J. Millard Tucker and A. A. Mocatta for J. Megaw for Respondent. Solicitor : Solicitor, India Office. JUDGMENT LORD SIMONDS.‑The substantial question raised in this appeal which is brought from the judgment of the Court of the Judicial Commissioner, North‑West Frontier Province, is whether an order of the Appellate Assistant Commissioner, Rawalpindi Range, of 18th January 1942, imposing on the appellant a penalty of Rs. 14,000 under section 28, income‑tax Act 1922, as amended upto the relevant date, is a valid order. The question arises in this way. The appellant during the years 1937 and 1938 carried on business as a supply contractor at Bannu in the North‑West Frontier Province, supplying livestock, wood and vegetables to the military units stationed in…