COMMISSIONER OF INCOME TAX Vs. D R ANAND

JUDGEMENT

(1.) THIS reference under s. 256 (1) of the IT Act, 1961 is at the instance of the Revenue for deciding the following question of law, namely :

(2.) THE relevant assessment year is 1971-72 for which the accounting period ended on 31st March 1971. THE ITO made certain additions to the income shown by the assessee in the return filed by him. On the basis of these additions the ITO also initiated penalty proceedings under s. 271 (1)(c) of the Act and referred the matter to the IAC concerned. THE IAC imposed penalty of Rs. 39,500 under s. 271 (1)(c) of the Act. THE assessee's appeal to the Tribunal against imposition of the penalty was allowed and it was held that the IAC had no jurisdiction to levy the penalty. Aggrieved by the view taken by the Tribunal the Revenue applied for a reference under s. 256 (1) of the Act which has been made by the Tribunal to answer the above question of law.