Income-tax-Suppression of income of partnership firm- Penalty, if can be imposed after dissolution of partnership-Income tax Act, 1922 (II of 1922), ss. 28(1)(c). 44.

The appellant who was carrying on business in food grains in partnership with another person submitted the returns of the income of the firm for the accounting years even after his partner's death. It was found that certain income of the firm was concealed and the Income-tax Officer not only assessed the firm to tax for the suppressed income but also imposed penalties for concealing the said income. Appeals to the higher income tax authorities failed and the appellant then applied to the High Court for a writ of certiorari quashing the orders of assessment and imposition of penalty on the ground inter alia that the firm was dissolved by his partner's death and no penalty could be imposed after dissolution of the firm, The High Court ·rejected the petition. On appeal with the certificate of the High Court.