JUDGMENT

This is an Income Tax reference u/s 66 (3) of the Act arising out of the assessment o Messrs. Lachhman Das Brijballabh Das for the assessment year 1934-35. The assessees accounting year was the Diwali year from November 1932 to November 1933 and the profits of that period have got to be considered for the purpose of this reference.

It appears that when called upon to submit a return he filed one, but the Income Tax Officer was of the opinion that the return did not furnish true particulars and therefore he went carefully into the regular account books of the assessee and considered certain facts which became evident from a little investigation. He increased the profits of the assessee and being of the opinion that the assessee had concealed the particulars of his income he imposed a penalty u/s 28 of the Act.

There was an appeal to the Assistant Commissioner and that officer, although he reduced the amount of the tax, was also of the opinion that there had been deliberate concealment and therefore a penalty was imposed by him though in a lesser sum.

The assessee then applied to the Commissioner u/s 33 of the Act and there was an application for a reference to this Court u/s 66