COMMISSIONER OF INCOME TAX Vs. SAMANTASINGHAR S

JUDGEMENT

(1.) ALL the three cases, which raise a common question of law and, therefore, have been heard together, are being disposed of herewith. The essence of the question is as to what would be the determining factor for applying the law relating to imposition of penalty in case of concealment of income. The petitioners in all the three cases are doctors. In the first case, the year of assessment is 1973-74 and in the other two cases, in which the petitioner is the same, the years of assessment are 1971-72 and 1972-73. The question of law referred by the Tribunal under Section 256(1) of the Income-tax Act, 1961 (for short " the Act "), in all the three cases is as follows :

(2.) FACTS of S.J.C. No. 72 of 1981 :

(3.) THE provisions relating to penalty are also of penal character. THE penalty is in the nature of a punishment. THErefore, the quantum of penalty must be determined with reference to the law prevailing on the date when the Act of concealment was committed and not when the penalty proceedings were initiated or the order imposing penalty was passed, unlike proceedings for assessment of tax which were governed by the law prevailing during the assessment year.