B.S.Dhillon, J.

1. The original assessment of the assessee for the assessment year 1965-66 was completed on a total income of Rs. 25,592. Later on, it came to light that there were two cash credits to the tune of Rs. 15,000. The assessment was, therefore, reopened tinder Section 147 of the I.T. Act, 1961 (hereinafter referred to as "the Act"). The assessee surrendered the cash credit of Rs. 15,000 and, consequently, the assessment was refrained on 20th February, 1971, on a total income of Rs. 49,592. Later on, the assessment order was rectified and the income was reduced to Rs. 40,592.

2. For concealing its income, penalty proceedings were initiated against the assessee by an order of the ITO on 20th February, 1971. Since the minimum penalty imposable exceeded Rs. 1,000, the ITO referred the case to the IAC on 29th December, 1972, under Section 274(2) of the Act. The IAC, vide his order dated 15th March, 1973, levied a penalty of Rs. 10,000 on the assessee under Section 271(1)(c) of the Act.

3. Aggrieved by the Order of the IAC, the assessee preferred an appeal before the Income-tax Appellate Tribunal, Amritsar (hereinafter referred to as " the Tribunal "). The Trib