ADDITIONAL COMMISSIONER OF INCOME TAX Vs. BRIJMOHAN JAISWAL

JUDGEMENT

(1.) BY this reference under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore has referred the following question of law for the opinion of this court :

(2.) THE material facts giving rise to this reference as set out in the statement of the case are as follows :

(3.) THE assessee preferred appeals to the Tribunal against the order of the IAC imposing penalties. THE Tribunal held on facts that the assessee furnished inaccurate particulars of the income and, therefore, he was clearly guilty of the default under Section 271(1)(c) of the Act and the penalty was clearly attracted. As regards the quantum of penalty the Tribunal held that as the returns at the original stage were filed before April 1, 1968, and as the default was to be attributed only to these returns the amendment to Section 271(1)(c) of the Act, which came into effect from April 1, 1968, will not be applicable as that amendment will not have any retrospective operation. In this view of the matter, the Tribunal reduced the quantum, of penalty to 30% of the tax sought to be avoided in respect of each of the three years under appeal before it. On these facts, at the instance of the Revenue, the Tribunal has referred the aforesaid question of law for the opinion of this court.