COMMISSIONER OF INCOME TAX Vs. BOMBAY MOTOR

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal has referred the following question for the opinion of the High Court:

(2.) THE facts relevant are these : The assessee was a registered firm. For the asst. year 1972 -73, the assessment was completed on November 15, 1973, by the ITO. At the time of completing the assessment, the ITO initiated penalty proceedings under S. 271(1)(c) of the IT Act, 1961, r/w the Taxation Laws (Amendment) Act, 1975 (Act No. 41 of 1975). Since the minimum penalty leviable exceeded rupees one thousand, the ITO referred the matter to the IAC who imposed penalty under s. 271(1)(c) on July 8,1976.

(3.) IN respect of the asst. year 1973 -74, the return was filed by the assessee -firm. The ITO completed the assessment on November 17, 1973. At the time of completing the assessment, he initiated penalty proceedings under S. 271(1)(c) of the IT Act. Since the minimum penalty leviable exceeded rupees one thousand, the matter was referred to the IAC. In both the matters, the IAC imposed penalty under S. 271(1)(c). On the assessee taking up the matter before the Tribunal, the orders of the IAC were reversed on the finding that the IAC had no jurisdiction to impose penalty after April 1, 1976, when the Taxation Laws (Amendment) Act, 1975, came into force. On an application made by the Department, the following question was referred by the Tribunal for the opinion of the High Court: