1987 (8) TMI 46

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....961, at the instance of the Revenue was to answer the following question of law, namely: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Inspecting Assistant Commissioner had no jurisdiction to levy the impugned penalty on the assessee under section 271 (1)(c) of the Income-tax Act, 1961 ? " The relevant assessment year is 1972-....

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....Act was deleted with effect from April 1, 1976, by the Taxation Laws (Amendment) Act, 1975. The Inspecting Assistant Commissioner proceeded to decide the pending reference and imposed a penalty of Rs. 40,550 under section 271(1)(c) of the Act by order dated March 22, 1977. The assessee preferred an appeal to the Tribunal which has been allowed. The Tribunal has held that the Inspecting Assistant C....

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....of making the reference to the Inspecting Assistant Commissioner by the Income-tax Officer and not the date of initiation of penalty proceedings is the determining factor in such a situation. In short, all such references made by the Income-tax Officer to the Inspecting Assistant Commissioner and pending before the Inspecting Assistant Commissioner prior to April 1, 1976, when sub-section (2) of s....