1990 (8) TMI 97

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....in cancelling the penalty order ?" The relevant assessment year is 1959-60. The facts leading to the making of this reference are as under : The assessee was assessed to tax for the assessment year 1959-60 in the status of an unregistered firm. The assessee carried on business as exporter and importer of sarees, cotton and art silk yarn and art silk clothes. On February 2, 1960, the assessee-firm voluntarily filed its return of income for the assessment year 1959-60 showing income of Rs. 61,286. The Income-tax Officer completed the process of assessment and passed his assessment order on January 31, 1964. The Income-tax Officer estimated the sales of imported goods made to various parties as he was not satisfied with the correctness o....

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....Income-tax Appellate Tribunal. Two contentions were urged before the Income-tax Tribunal. Firstly, it was contended on behalf of the assessee that the Income-tax Act, 1961, could not be invoked for the purpose of levy of penalty in respect of an alleged default pertaining to the assessment year 1959-60. The assessee relied upon the judgment of this honourable court in the case of Shakti Offset Works v. IAC of I. T. and in the case of Miss. Saroj Nayudu v. AAC of I. T. [1967] 64 ITR 637, in support of his contention that section 297(2)(g) of the Income-tax Act, 1961, was ultra vires article 14 of the Constitution of India. It was also contended before the Tribunal on behalf of the assessee that, in any event, no penalty could be imposed on a....