COMMISSIONER OF INCOME TAX Vs. SONU VYAS

JUDGEMENT

(1.) ON an application under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for our opinion :

(2.) THE relevant assessment year is 1972-73. THE assessment was completed on February 10, 1976, on total income of Rs. 87,424 as against returned income of Rs. 35,214. THE Income-tax Officer has initiated the penalty proceedings under Section 271(1)(c) on the same day, viz., February 10, 1976. As the minimum penalty leviable exceeded Rs. 25,000, the matter was referred to the concerned Inspecting Assistant Commissioner before April 1, 1976. Sub-section (2) of Section 274 has been omitted with effect from April 1, 1976. THEreafter the Inspecting Assistant Commissioner has no jurisdiction to levy the penalty but in the case in hand the facts are that penalty proceedings were initiated before April 1, 1976.