COMMISSIONER OF INCOME TAX Vs. JAMUNA DEVI

JUDGEMENT

(1.) THIS is a reference under S. 27 (1) of the WT Act, 1957 (for short "the Act") at the instance of the CWT, Allahabad. The following question of law has been referred for the opinion of this Court:

(2.) THIS reference relates to the asst. yrs. 1972-73 to 1974-75. Simultaneoulsy with the completion of assessments the WTO initiated proceedings under S. 18(a)(c) of the Act. He referred the matters to the IAC under S. 18 (3) as it stood at the relevant time. The assessee was subjected to penalty of varying amounts for all these years by the IAC by his three separate orders passed under S. 18 (1)(c)(iii) r/w sub-s. (3) of S. 18 of the Act. In appeal before the Tribunal the assessee took up a preliminary objection that the orders of penalty were without jurisdiction and, therefore, void ab initio, inasmuch as, on 28th Oct., 1977 the IAC was " competent authority" to pass the impugned penalty orders because of the amendment brought about in S. 18 of the Act. w.e.f. 1st April, 1976 by the Taxation Laws (Amendment) Act, 1975. The Tribunal upheld the preliminary objection and allowed the appeals of the assessee by deleting the penalties for all these years. It is in this background that the question, set out above, has been referred for the opinion of this Court.

(3.) THE allied provisions of the IT Act referred to above, are analogous to the provisions under the WT Act, with which we are concerned in this reference. By the Taxation Laws (Amendment) Act, 1975, w.e.f 1st April, 1976, the IAC had ceased to the "competent authority" to pass any penalty order, after the said date with reference to the penalty imposable on an assessee under S. 18 (1) (c) of the Act. The rule of law laid down in the cases referred to hereinabove, is equally applicable to case in hand,