TaxTMI 
TaxTMI 
1996 (4) TMI 3
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....Income-tax Appellate Tribunal is right in law in cancelling the penalty levied by the Inspecting Assistant Commissioner under section 271(1)(c) holding that the Inspecting Assistant Commissioner had no jurisdiction to levy penalty under section 271(1)(c) in view of changed provisions of law ? " The assessment year concerned herein is 1972-73. The High Court followed its earlier decision in R. Abdul Azeez v. CIT [1981] 128 ITR 547 and has answered the question against the Revenue. In R. Abdul Azeezs case [1981] 128 ITR 547, the Karnataka High Court had taken the view that by virtue of the omission of sub-section (2) of section 274 by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976, the penalty proceedings pendin....
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....on 274(2) was amended with effect from April 1, 1971, by the Taxation Laws (Amendment) Act,. 1970. The amended sub-section (2) read as follows : " Notwithstanding anything contained in clause (iii) of sub-section (1) of section 271, if in a case falling under clause (c) of that sub-section, the amount of income (as determined by the Income-tax Officer on assessment) in respect of which the particulars have been concealed or inaccurate particulars have been furnished exceeds a sum of twenty five thousand rupees, the Income-tax Officer shall refer the case to the Inspecting Assistant Commissioner, who shall, for the purpose, have all the powers conferred under this Chapter for the imposition of penalty." [The words underlined by us were....
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....f the assessee whereupon the matter was brought to this court. This court at the outset stated the general principle applicable in this behalf in the following words : " It may be stated at the outset that the general principle is that a law which brings about a change in the forum does not affect pending actions unless an intention to the contrary is clearly shown. One of the modes by which such an intention is shown is by making a provision for change over of proceedings from the court or the Tribunal where they are pending, to the court or the Tribunal which, under the new law, gets jurisdiction to try them." The court then observed that once a reference was validly made to the Inspecting Assistant Commissioner he did not lose juri....
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....ken by the Allahabad and Karnataka High Courts and approved the view taken by the other High Courts. In our opinion, the principle underlying the said decision is squarely applicable herein. In this case also, a reference was made to the Inspecting Assistant Commissioner in accordance with the law in force on the date of reference. Once the Inspecting Assistant Commissioner was thus seized of the matter, he did not lose seizin thereof on account of the deletion of sub-section (2) of section 274. This is also the principle underlying section 6 of the General Clauses Act. We may also mention that in Dhadi Sahu 's case [1993] 199 ITR 610, this court referred, inter alia, to the earlier decision of this court in Manujendra Dutt v. Pur....