Penalty under section 271(1)(c) depended on the reference date to the Inspecting Assistant Commissioner.

Penalty under section 271(1)(c) turned on the crucial date on which the matter was referred to the Inspecting Assistant Commissioner, because a reference made before 1 April 1976 attracted a different penalty consequence from a later reference. The assessment had been reopened and completed under sections 147 and 148, but the Tribunal record did not contain a finding on that decisive date. The Delhi HC therefore sent the matter back to the Tribunal for reconsideration after ascertaining when the reference was made, since that fact determined whether the penalty could stand.

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Issues: Whether the penalty imposed under section 271(1)(c) for assessment year 1965-66 was sustainable depended on the date on which the matter was referred to the Inspecting Assistant Commissioner, since a reference made before 1 April 1976 attracted one result and a reference made after that date attracted another.

Analysis: The assessment had been reopened and completed under sections 147 and 148 of the Income-tax Act, 1961, and penalty was thereafter levied. The record before the Tribunal did not contain a finding on the crucial date of reference to the Inspecting Assistant Commissioner. That date was decisive because, if the reference was prior to 1 April 1976, the penalty position would be governed accordingly, whereas a later reference would render the penalty unsustainable.

Outcome: The matter was sent back to the Tribunal for reconsideration after ascertaining the date of reference to the Inspecting Assistant Commissioner.

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