Judgment

KHANNA, J. :- This judgment would dispose of four civil appeals Nos. 1447 to 1450 of 1969 which have been filed by the assessee by special leave against the judgment of Gujarat High Court whereby that court answered the following two questions in a reference under Section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) in the affirmative and in favour of the department :

"(1) Whether on the facts and in the circumstances of the case, the proceedings for the imposition of penalty were properly commenced in the course of any proceedings under the Act as required by Section 271 of the Income-tax Act, 1961 for the assessment years 1959-60 to 1962-63?

(2) Whether on the facts and in the circumstances of the case, there was any material or evidence before the Tribunal to hold that the assessee had deliberately concealed particulars of his income or deliberately furnished inaccurate particulars of such income as required by S. 271 (1) (c) of the Act for the assessment years 1959-60 to 1962-63?"

2. While answering question No. 1 in the affirmative, the High Court observed that so far as the assessment year 1961-62 was concerned the penalty proceedings were inv