COMMISSIONER OF INCOME TAX Vs. ILLA PANDA

JUDGEMENT

(1.) THESE applications under Act, are by the revenue calling upon the S. 256(2) of the IT Act, 1961 (the Tribunal, Cuttack Bench, to state a case and refer the following question for the opinion of this Court :

(2.) THE relevant asst. assessment yrs. are 1962 -63, 1964 -65, 1965 -66 and 1969 -70. The assessee submitted voluntary returns for the above years and the ITO held that the assessee had, without reasonable cause to failed furnish the estimate of advance tax payable by her in terms of S. 212(3) of the Act. So a proceeding under S. 273(b) of the Act was initiated against the assessee and ultimately penalties of Rs. 7,920 Rs. 2,076, Rs. 2,635 and Rs. 21,590 for the asst. yrs. 1962 -63, 1964 -65, 1965 -66 and 1969 -70 respectively, were levied. The matter was carried in appeal to the AAC and it was contended there that since the initiation of proceedings were completed and recorded after 1st April, 1970 no penalty under S. 273 could be levied. The CIT accepted the above contention of the assessee and waived the amounts of penalty. The mater was carried to the Tribunal by the Department. The Tribunal also accepted the contention of the assessee and dismissed the appeal. An application under S. 256(1) was filed before the Tribunal which was dismissed. So the Department moved this Court under S. 256(2).

(3.) THE assessment years involved in the present case or prior to the assessment year commencing on 1st April, 1970, when the amended provision of S. 273 came into force. Therefore, the provision will have no application tot in he fact and circumstances of these case.