1990 (7) TMI 16

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....ssment year 1972-73, the assessment was completed on November 15, 1973, by the Income-tax Officer. At the time of completing the assessment, the Income-tax Officer initiated penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961, read with the Taxation Laws (Amendment) Act, 1975 (Act No. 41 of 1975). Since the minimum penalty leviable exceeded rupees one thousand, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner who imposed penalty under section 271(1)(c) on July 8,1976. In respect of the assessment year 1973-74, the return was filed by the assessee-firm. The Income-tax Officer completed the assessment on November 17, 1973. At the time of completing the assessment, he initiated penalty ....

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....ction 274(2) of the Act was deleted. It means that from April 1, 1976, the Inspecting Assistant Commissioner no longer remained in power to impose penalty under section 271(1)(c) of the Act. With effect from April 1, 1976, section 271(1)(c) of the Act provides that if the Income-tax Officer is satisfied that any person 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, in the cases referred to in clause (c), in addition to any amount of tax payable by him, a sum which shall not be less than ten per cent. but which shall not exceed fifty per cent. of the amount of tax sought to be avoided by reason of concealment of particulars of his inc....

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....t was deleted, the Inspecting Assistant Commissioner would have jurisdiction to impose penalty, since the Inspecting Assistant Commissioner's jurisdiction was saved even after the deletion of sub-section (2) of section 274 only in respect of the references made to the IAC and pending with the IAC prior to April 1, 1976. We have noted above that his jurisdiction was saved in respect of references made to him prior to April 1, 1976. We are in respectful agreement with the view taken in the aforesaid decision. From the referring order, the date on which reference was made by the Income-tax Officer to the Inspecting Assistant Commissioner is not clear. However, the mistake of the Tribunal on that count does not come in our way in deciding th....