PRITPAL SINGH, J.

1. M/s. Basal Tool Co., petitioner No. 1, is a partnership firm. During the assessment year 1967-68, petitioners Nos. 2 and 3, namely, Shanti Lal Kapoor and Subash Kapoor, were the partners of this firm. Suresh Kapoor, petitioner No. 4, became a partner of this firm subsequently in 1969. Income-tax return for the assessment year 1967-68 on behalf of the firm was filed by Shanti Lal Kapoor, Petitioner No. 2, on August 24, 1967, declaring an income of Rs. 49,720. The Income-tax Officer assessed the income at Rs. 2,03,030. On appeal, the income was reduced to Rs. 89,862. Subsequently, in the month of March, 1975, a search was conducted by the income-tax authorities at the premises of the firm. In the wake of this search, the assessment proceedings were reopened were reopened and a revised return was filed by Suresh Kapoor, petitioner No. 4, on June 7, 1977, declaring the income of the firm as Rs. 1,49,860. The assessment order was passed on September 15, 1980, wherein the income was assessed at Rs. 1,83,770. On the plea that the assessee had furnished inaccurate particulars of the income amounting to Rs. 31,390, penalty of Rs. 4,714 was levied on the firm by