Penalty jurisdiction under section 271(1)(c) revived after Supreme Court reversal, and the Tribunal's cancellation was set aside.

The Tribunal's view that the Inspecting Assistant Commissioner lacked jurisdiction to impose penalty under section 271(1)(c) after 1 April 1976 was based on an earlier High Court ruling interpreting the Taxation Laws (Amendment) Act, 1975. That ruling had since been reversed by the Supreme Court, so the foundation for cancelling the penalty no longer survived. The High Court therefore set aside the Tribunal's order and remanded the matter for fresh decision on the merits in line with the Supreme Court's ruling.

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Issues: Whether the Appellate Tribunal was justified in holding that the Inspecting Assistant Commissioner had no jurisdiction to impose penalty under section 271(1)(c) on or after 1 April 1976, and in cancelling the penalty.

Analysis: The question depended on the correct interpretation of the Taxation Laws (Amendment) Act, 1975. The Tribunal had relied on an earlier High Court decision, but that decision had since been reversed by the Supreme Court. In light of the Supreme Court ruling, the basis for the Tribunal's view that the Inspecting Assistant Commissioner lacked jurisdiction no longer survived.

Conclusion: The Tribunal's order was set aside and the matter was remanded to the Tribunal for a fresh decision on the merits in accordance with the Supreme Court's ruling.

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