COMMISSIONER OF INCOME TAX Vs. JAMEAL AND CO

JUDGEMENT

(1.) THE question which has been sub mitted to this Court for its determination in this reference under s. 256(1) of the IT Act, 1961, which has been made by the Tribunal at the instance of the CIT is:

(2.) RELYING upon the judgment of the Mysore High Court in S.C. Magavi Haveri vs. CIT (1967) 64 ITR 409 (Mys), the Tribunal held that in respect of the assessment years in question, namely, asst. yrs. 1950 51 to 1955 56, penalty could be validly levied upon the assessee only under the provisions of the Indian IT Act, 1922, and not under the provisions of S. 271(1)(a) of the IT Act, 1961. After the order of the Tribunal an appeal was filed by the Department in the Supreme Court against the said judgment of the Mysore High Court, and it was allowed by the Supreme Court. The judgment of the Supreme Court is CIT vs. S. G. Magavi (1971) 81 ITR 475 (SC). In that case, in view of an earlier decision of the Supreme Court, namely, Jain Brothers vs. Union of India (1970) 77 ITR 107 (SC), the respondents conceded that where the assessments had been completed after April 1, 1962, which is also the case here, penalty can be imposed under S. 271 of the IT Act, 1961, in respect of the assessment years ending prior to the commencement of the 1961 Act. The Supreme Court gave its judgment accordingly and reversed the judgment of the Mysore High Court.

(3.) ACCORDINGLY , we answer the question in the affirmative.