S.P.Goyal, J.

1. The assessee-firm was initially formed on September 20, 1958, consisting of Pyare Lal and his two sons, Lachhman Dass and Sat Parkash, as partners. After the death of Pyare Lal, it was reconstituted on February 22, 1960, and Smt. Basanti Devi, his widow, was introduced in his place. Yet another change took place in the constitution of the firm on March 23, 1962, whereby Smt. Basanti Devi retired and Omkar, son of Kishan Chand, was taken as partner with two annas share. During the assessment years 1961-62 and 1962-63 the firm paid Rs. 8,261 on account of sales tax which were ordered to be refunded and on that account a sum of Rs. 4,498 was received by the firm on September 7, 1967, and credited to the account of Lachhman Dass and Sat Parkash in equal shares. This amount was not shown as income of the firm in the assessment year 1968-69 and was included in its income by the assessing authority. Simultaneously, the penalty proceedings for wilful concealment of income were instituted and penalty imposed by the IAC, vide order dated September 21, 1970. However, on appeal, the Tribunal deleted the penalty and on an application by the Commissioner referred the fol