COMMISSIONER OF INCOME TAX Vs. SHANKAR LAL SHRINIWAS

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following two questions of law arising out of its order dated August 1, 1980, in respect of the assessment year 1966-67 ;

(2.) WHETHER the Tribunal was justified in upholding the finding of the Appellate Assistant Commissioner in reducing the penalty from Rs. 7,118 to Rs. 1,000 ?"

(3.) THE provisions of Section 271(1)(c) provide that if the Income-tax Officer, in the course of any proceedings, is satisfied that any person has concealed the particulars of his income or furnished inaccurate particulars of such income, then he may direct that such person shall pay by way of penalty the amount specified in Clause (iii) of that sub-section. THE word "satisfaction" which has been used is for the purpose of initiating the penalty and assuming the jurisdiction and the offence is committed when the particulars are concealed or inaccurate particulars are furnished in respect of the income which could be by furnishing the return and, therefore, the offence is committed at the time when initially the return is submitted.