Judgement

MAHAJAN C.J.I. : The petitioner in this case is a resident of Poona in the State of Bombay. He carries on business there and also holds property in the city of Bombay. During the eight years beginning with 1940-41 and ending with 1947-48 he was assessed on a total income of Rs. 9,75,265 /-. The Central Government, thinking that he had evaded payment of tax and had concealed substantial profits, in the year 1948 referred his case for investigation to the Commission acting under the provisions of S. 5(1), Taxation on income (Investigation Commission) Act, 1947. The Commission was directed to investigate what profits he had made during the period commencing with 1-1-1939 and ending on 31-12-1947. After investigation, the Commission, by their report dated 1-5-1953, held that the total income which escaped taxation during the relevant years was in the sum of Rs. 2,26,900/- and the assessee s liability was in the sum of Rs. 1,96,175.

2. During the investigation the petitioner made an application for settlement of his liability under the provisions of S. 8-A of Act 30 of1947. The Government accepted the request and entered into a settlement with him and directed the income-tax off