COMMISSIONER OF INCOME TAX Vs. P N PRASAD

JUDGEMENT

(1.) THIS is a reference made by the Tribunal, Patna Bench A', Patna, under S. 256(1) of the I. T. Act, 1961, and a statement of case has been duly submitted. The question of law referred for our opinion is as to "whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the quantum of penalty to be imposed in this case had to be on the basis of law which was in force in the asst. year 1966 -67 and not on the basis of the amended law which came into force from April 1, 1968 ?"

(2.) SINCE the point is clearly covered by a catena of decisions, we need not go into detailed statement of facts. All that is relevant to note here is that in paragraph No. 7 of the statement of case, the Tribunal has stated that as regards the quantum of penalty, it was of the view that the law which came into force from April 1, 1968, enhancing the scale of penalty could be applied to the concealment in respect of the asst. year 1968 -69 and not to an earlier year, the fact that the return of the assessee was filed after April 1, 1968, would not change the position regarding the quantum of penalty. And considering the law applicable in the asst. year 1966 -67, the Tribunal held that the penalty was to be imposed on the basis of the tax avoided on that basis and, therefore, it reduced the penalty to the extent of Rs. 2,000 only from a larger amount as imposed by the IAC in accordance with the amended law which came into force w.e.f. April 1, 1968.