SUBBA RAO, C.J. :- This is an appeal against the judgment of our learned brother Satyanarayana Raju, J.

2. The facts may be briefly stated. The appellant was a partner of the registered firm of Messrs. Talluri Suryanarayana and others. The firm carried on the business of milling paddy from 17th January, 1945 to 28th December, 1947, after which it discontinued the business. On 7th August, 1950, the firm filed a return disclosing an income of Rs. 2,389, for the assessment year 1947-48. That was signed by the partner Talluri Suryanarayana. During the scrutiny of the accounts, the assessee admitted that some cash credits found in the accounts represented the firms own income and the Income-tax Officer also found that for some other credit items the assessee had no explanation. The assessment was computed on a total income of Rs. 50,776. Thereafter, a notice was issued under S. 28 (1) (c) of the Indian Income-tax Act for the admitted concealment of income by the firm. On 31st August, 1953, a penalty of Rs. 9,300 was levied on the firm and the said order and the notice of demand were duly served on the partner T. Suryanarayana, who represented the firm. As the firm discontinued t