COMMISSIONER OF INCOME TAX Vs. BASHIRKHAN ISMAILKHAN

JUDGEMENT

(1.) THE following question has been referred to us for our consideration by the Income -tax Appellate Tribunal under section 256(1) of the Income -tax Act, 1961 :

(2.) WE are concerned in this reference with four assessment years, viz., 1954 -55 to 1957 -58. In respect of these years the assessments of the assessee, an individual, were completed between 29th March, 1956, and 25th February, 1960. Subsequently, the Income -tax Officer reopened the assessments under section 34. For all the four years the reassessments were completed on 21st January, 1963, i.e., after commencement of the Income -tax Act, 1961. During the course of the reassessment proceedings the Income -tax Officer came to the conclusion that penalty proceedings were attracted and, accordingly, action was initiated under section 271(1)(c). Inasmuch as the amounts of penalty would exceed Rs. 1,000, the proceedings were subsequently taken up by the Inspecting Assistant Commissioner, who by his orders dated 19th January, 1965, imposed penalties of Rs. 1,401, Rs. 2,689, Rs. 8,007 and Rs. 9,191, respectively, for each of the four assessment years in question.

(3.) BEFORE us Mr. Joshi on behalf of the Commissioner relied on the provisions contained in section 297(2)(g) of the Act of 1961. On behalf of the assessee the learned counsel submitted but not very strenuously that the said provision was not applicable but that the case would be governed by the provisions contained in clause (f) of section 297(2). Both these provisions may be fully set out :