COMMISSIONER OF INCOME TAX Vs. KANAGASABAI MUDALIAR A

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal has referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961 :

(2.) THE point for consideration is whether the Inspecting Assistant Commissioner had jurisdiction to impose penalty under section 271(1)(c) in this case for the assessment years 1966-67 and 1971-72. THE Tribunal relying upon the decision of the Karnataka High Court in the case of R. Abdul Azeez v. CIT [1981] 128 ITR 547, held that there was no jurisdiction on the part of the Inspecting Assistant Commissioner after amendment to levy penalty under section 271(1)(c) of the Act in the present case especially after the amendment to section 274 of the Income-tax Act with effect from April 1, 1976, as per the Taxation Laws (Amendment) Act, 1975, which has taken away the jurisdiction of the Inspecting Assistant Commissioner. THE decision of the Karnataka High Court was reversed by the Supreme Court in the case of CIT v. Smt. R. Sharadamma [1996] 219 ITR 671, wherein it was held that (headnote) :