COMMISSIONER OF INCOME TAX Vs. PALI DYEING COMPANY

JUDGEMENT

(1.) THIS is an application under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), at the instance of the Revenue to answer the following questions of law, viz. :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Appellate Assistant Commissioner cannot initiate penalty proceedings under Clause (b) of Section 251(1) of the Income-tax Act, 1961, in the course of appeal proceedings, filed against a penalty order, passed under Section 271(1)(a) by the Income-tax Officer ?"

(3.) CONSEQUENTLY, the reference is answered in favour of the Revenue and against the assessee by holding that the Tribunal's view was not justified. No costs.