MANSUKHLAL & BROTHERS vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY — 1972 PTD 532

Citation: 1972 PTD 532

Court: Supreme Court of India

Year: 1971

Decision Date: 1971-12-31

Parties: MANSUKHLAL & BROTHERS vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY JUDGMENT

Headnotes

Case cited as 1972 PTD 532

Judgment Text

Court Name: Supreme Court of India Judge(s): V. Ramaswa mi, A. N. Grover Title:MANSUKHLAL & BROTHERS vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY JUDGMENT Reported As: 1972 PTD 532 Result: Appeal dismissed Judgment JUDGMENT GROVER, J.---This is an appeal by special leave from a judgment of the Bombay High Court in a reference made under section 66(1) of the Income-tax Act, 1922, hereinafter called Act, answering the following question which had been referred it in the negative and against the assessee: "Whether in computing for purposes of levy of penalty under section 28(1)(c) the amount of income-tax and super tax, which would have been avoided if the income as returned had been accepted such `income as returned' includes Item of Income too, which though not actually returned had been added to the assessment solely on ground of lack of evidence?" The assessee is a firm dealing in hessian, twines, gunny bags, etc., on wholesale basis. For the assessm ent year 1948-49 the assessee had returned income amounting to Rs. 45,904. The Income-tax Officer, however, added two items of Rs. 24,000 and Rs. 90,000 as profits and income from undisclosed sources which had been concealed by the assessee. A penalty of Rs. 62,000 was imposed within the maximum limits provided by section 28(1)(c) of the Act. The Appellate Assistant Commission in appeal held that only the item of Rs. 24,000 be treated as concealed income and the other amount of Rs. 90,000 could not be treated as such for the…

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