1996 (7) TMI 124

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....ed by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976, was applicable to this case ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the penalty orders should not have been cancelled by the Commissioner of Income-tax (Appeals) without considering whether the penalty was imposable under the main provisions of section 271(1)(c) ?" The assessee had filed its return on October 29, 1971, for the assessment year 1968-69 showing a loss of Rs. 2,32,870. The Income-tax Officer framed the assessment on September 17, 1977, determining the total loss at Rs. 1,30,063. After recording his satisfaction regarding initiation of proceedings under section 271(1)(c) of the Inco....

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....ations with effect from April 1, 1976. The Commissioner of Income-tax (Appeals) was of the view that the Income-tax Officer had erred in relying upon a provision which was not in existence on the date notice for levying the penalty was issued. He also held that it was not clear as to which out of the four Explanations was invoked by the Income-tax Officer. The Revenue carried an appeal before the Tribunal. Counsel for the Revenue raised a contention that the Explanation which was in existence at the time when the return was filed would be applicable. The Tribunal accepted the appeal and held that the Explanation which existed prior to April 1, 1976, i.e., which was in existence at the time of filing the return would be applicable. It was....