COMMISSIONER OF INCOME TAX Vs. GHASIRAM KALURAM

JUDGEMENT

(1.) AT the instance of the applicant (Department), the tribunal Indore, stated the case and referred under noted questions for answer with reference to consolidt. order passed on 22nd Sept., 1990 in IT Appeal Nos. 777 to 780 (Ind) of 1987 relating to the asst. yrs. 1976-77 to 1979-80.

(2.) THE facts lie in narrow compass. The non-applicant-assessee is a registered firm. The ITO Ujjain levied penalty of Rs. 13,550, 21,820, 16,910 and 15,970 under S. 271(1)(c) of the income-tax Act) ('the Act') for the asst. yrs. 1976-77 to 1979-80 respectively. It is said that the incomes in respect of the aforesaid assessment years, were allegedly concealed by the assessee-firm exceeding Rs. 25,000 in each of these four years. The ITO levied penalties without previous approval the IAC and as such there was contravention of provision to cl. (iii) of sub-s. (1) of S. 271. Copies of the order of ITO are marked as annxures A/1 to A/4.

(3.) AGGRIEVED by the order of AAC, the assessee filed the appeal before the Tribunal. The Tribunal following its order in the case of CIT vs. Damodardas Murarilal (IT Appeal No. 1066 (Ind) 1985 of dt. 27th July, 1990) held that the levy of penalty in all four years, was illegal and without jurisdiction. The tribunal cancelled the penalties, Copy of the order of the tribunal, is marked as Annexure C-I. Aggrieved by the order of the tribunal, the Department filed the application filed the application under S. 256(1) of the Act for reference to this Court. On the application of the Department the Tribunal state the statements of the case and referred the aforesaid questions law for the opinion of this Court.