Penalty jurisdiction survives valid pre-deletion reference under tax law, with later repeal not invalidating proceedings.

A valid reference for penalty proceedings made while section 274(2) was still in force conferred jurisdiction on the Inspecting Assistant Commissioner to levy penalty under section 271(1)(c). The High Court held that no prescribed statutory form of reference was required, and a reference made on 11 September 1975 remained effective even after section 274(2) was deleted from 1 April 1976. The later deletion did not invalidate a reference validly made under the law then prevailing, so the jurisdiction already attracted by that reference continued. The question was answered in the affirmative, against the assessee.

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Issues: Whether the Inspecting Assistant Commissioner had jurisdiction to impose penalty under section 271(1)(c) after deletion of section 274(2) from 1 April 1976, where the reference for penalty proceedings had been made earlier.

Analysis: The reference to the Inspecting Assistant Commissioner was found to have been made on 11 September 1975, when section 274(2) was still in force. No prescribed form of reference was required under the Act or the Rules. Once a valid reference had been made in accordance with the law then prevailing, the subsequent deletion of section 274(2) did not invalidate the reference or the jurisdiction already attracted by it.

Conclusion: The Inspecting Assistant Commissioner had jurisdiction to impose penalty under section 271(1)(c), and the question was answered in the affirmative, against the assessee.

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