SADHU RAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This matter relates to the jurisdiction of the IAC to impose the penalty. The High Court in CIT V/s. Sadhu Ram, 1981 127 ITR(P&H) 517 has found that the IAC has the jurisdiction to impose the penalty with reference to the date on which the order was passed by the ITO and not with reference to the date on which the penalty was imposed. This view of the High Court is in consonance with the law laid down by this Court in CIT V/s. Dhadi Sahu, 1993 199 ITR(SC) 610, wherein it has been held that once the IAC has validly exercised jurisdiction to pass the order imposing a penalty, the Amending Act would not affect his jurisdiction. In view of the said decision, the appeal is dismissed. No order as to costs.