TaxTMI 
TaxTMI 
1993 (7) TMI 34
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....rch and seizure made in the premises of the assessee on December 16, 1966, reassessment proceedings were initiated and a notice under section 148 of the Income-tax Act, 1961 (hereinafter the "new Act" only), was issued on January 4, 1969. The assessee filed its return showing the same income as returned earlier. In the assessment proceedings, an addition of Rs. 23,907 was sustained up to the Tribunal as income from undisclosed sources based on unexplained cash credits. Because of those additions, penalty proceedings under section 271(1)(c) were initiated and Rs. 23,907 was imposed as penalty for concealment of income by the Inspecting Assistant Commissioner. On appeal, the Tribunal set aside the said order of penalty by taking the view that....
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....shwar Prasad No. II, learned counsel appearing for the assessee, strenuously submitted that in view of the recent judgment of the Supreme Court in the case of CIT v. Onkar Saran and Sons [1992] 195 ITR 1, the question has to be necessarily answered against the Department because now, the apex court has conclusively resolved the controversy by holding that even in a case where a return filed in response to a notice under section 148 of the Act involved an element of concealment, the law applicable would be the law as it stood at the time when the original return was filed for the assessment year in question and not the law as it stood on the date on which the return was filed in response to the notice under section 148. In substance, his sub....
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....erson-... (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty-... (iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of the income in respect of which the particulars have been concealed or inaccurate particulars have been furnished. Explanation.-Where the total income returned by any person is less than eighty per cent. of the total income (hereinafter in this Explanation referred to as the correct income) as assessed under section 143 or section 144 or section 147 (reduced by the expenditure incurred bona fide by him....
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....he penal provisions as contained under the old Act will apply or those contained under the new Act will apply. Mr. Rameshwar Prasad No. II is partially right in submitting that the ultimate question, as posed above, has been answered to a good extent by the Supreme Court in the case of CIT v. Onkar Saran and Sons [1992] 195 ITR 1, wherein their Lordships have affirmed the view taken by the majority of the High Courts holding that even in a case where a return filed in response to a notice under section 148 involved an element of concealment, the law applicable for imposition of penalty will be the law as enforced at the time of filing of the original return for the assessment year in question and not the law as it stands on the date on whic....
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....ch was added with effect from April 1, 1964, was at all applicable since the original return was filed prior to April 1, 1964, though the second return pursuant to reassessment proceedings had been filed subsequent to the said date. Therefore, in the said case, admittedly, section 271(1)(c) of the new Act was applicable. Apart from this distinguishing feature which is quite material in nature, in view of the broad language used by the Supreme Court in the case of CIT v. Onkar Saran and Sons [1992] 195 ITR 1, the judgment of this court in the aforesaid case cannot be said to hold the field in the facts of the present case. So far as the submission of Mr. Vidyarthi based on section 297(2)(g) of the Act is concerned, in my opinion, even if it....