J.C.Shah, C.J.I.

(1) THE facts in these four appeals are substantially common. We will deal with the facts in respect of only one appeal (Civil No. 631 of 1967) relating to the assessment of income-tax for the assessment year 1943-44. The decision will govern the other appeals.

(2) THE assessee declared in his return for the assessment year 1943-44, an income of Rs. 34,560.00. On examination of the accounts produced by the assessee the Income Tax Officer found that there was inflation in purchase, spurious cash credit, diversion of sales, and bogus speculation losses were claimed. In assessing the income the Income Tax Officer made additions under four heads of different items of income and brought to tax an income of Rs. 1,43,433.00. The order: passed by the Income Tax Officer was substantially confirmed in appeal by the Appellate Assistant Commissioner and by the tribunal. The Income Tax Officer also commenced a proceeding under S. 28(1)(c) of the Indian Income Tax Act and imposed a penalty of Rs. 24,500.00 upon the assessee. Against the order passed in proceedings for levying penalty, appeals were taken to the Appellate Assistant Commissioner who confirmed the ord