COMMISSIONER OF INCOME TAX Vs. CHHOTELAL SHANKERLAL

JUDGEMENT

(1.) ON an application under s. 256(1) of the IT Act the Tribunal has referred the following question for our opinion :

(2.) THE assessment was completed under s. 143(3) of the IT Act. THE relevant assessment year is 1973-74. While completing the assessment under s. 143(3) of the IT Act, an addition of Rs. 30,000 was made. In appeal the addition was reduced by the AAC to Rs. 11.360. THEreafter the penalty proceedings were initiated under s. 271(1)(c) of the Act 1961, and on reference the penalty has been levied by IAC. That order was challenged and at the stage of Tribunal, the Tribunal has taken the view that as the penalty order has been passed after amendment in s. 274(2) of the Act, the IAC has no jurisdiction after 1st April, 1976.

(3.) WHEN the penalty proceedings are initiated before 1st April, 1976, in our view the issue is squarely covered by the decision of this Court in the cases referred above. In the result, we answer the question referred in negative i.e., in favour of the Revenue and against the assessee. The reference so made shall stand disposed of accordingly.