Transitional penalty rule under income tax law applies when assessment is completed after 1 April 1962, not return filing date.

Section 297(2)(g) governs the transition from the Indian Income-tax Act, 1922 to the Income-tax Act, 1961, and makes penalty proceedings under section 271(1)(c) applicable where the relevant assessment was completed after 1 April 1962. The date on which the return was filed does not determine the penalty provision applicable. The analysis follows the Supreme Court ruling in Jain Brothers and rejects the contrary view based on the return-filing date, stating that penalty under section 271(1)(c) applies in such cases.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961, was applicable to concealment relating to assessment years ending on or before 31 March 1962, where the assessments were completed after 1 April 1962.

Analysis: The assessments had been made under the Indian Income-tax Act, 1922, but the penalty proceedings were initiated and concluded after the commencement of the Income-tax Act, 1961. Section 297(2)(g) specifically governs the transition and provides that where assessment for the relevant year is completed after 1 April 1962, penalty proceedings are to be taken under the 1961 Act. The earlier filing of the returns did not control the applicability of the penalty provision. The later Supreme Court ruling in Jain Brothers settled the position that section 271(1)(c) applies in such cases, and the contrary view based on the date of return filing was rejected.

Conclusion: The reference was answered against the assessee and in favour of the Revenue; penalty under section 271(1)(c) of the Income-tax Act, 1961, was held applicable.

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