COMMISSIONER OF INCOME TAX Vs. BHIKAMDASS BASTIRAM

JUDGEMENT

(1.) THIS reference under section 256(1) of the Income -tax Act, 1961, is at the instance of the Revenue, to answer the following question of law, namely :

(2.) THE relevant assessment year is 1969 -70. The question of jurisdiction of the Inspecting Assistant Commissioner to levy penalty depends on the date on which the reference to the Inspecting Assistant Commissioner was made by the Income -tax Officer as held in a series of decisions of this court. It was held that where the reference by the Income -tax Officer to the Inspecting Assistant Commissioner was made subsequent to April 1, 1976, when sub -section (2) of section 274 of the Income -tax Act, 1961, was deleted, the reference was incompetent and gave no jurisdiction to the Inspecting Assistant Commissioner to impose penalty; but when such a reference was made prior to April 1, 1976, it was saved even after deletion of sub -section (2) of section 274 and the Inspecting Assistant Commissioner had jurisdiction to impose penalty in a reference made to him and pending prior to April 1, 1976. (See CIT v. Sri Niwas Rice and Oil Industries ).

(3.) CONSEQUENTLY , the reference is answered in favour of the Revenue and against the assessee by holding that the Tribunals view is not justified.