1985 (4) TMI 61

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nce under s. 256(1) of the I.T. Act 1961, the following questions of law have been referred to this court for the assessment year 1963-64 : " 1. Whether, on the facts and in the circumstances of the case and in view of the fact that the return of income was filed after April 1, 1964, the Tribunal was right in holding that the provisions of the Explanation to s. 271(1)(c) of the I.T. Act, 1961, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sources. The ITO initiated proceedings under s. 271(1)(c) of the I.T. Act, 1961, and referred the matter to the IAC for imposition of penalty. On appeal against the quantum, the AAC accepted the cash credits as genuine excepting one standing in the name of Amba Prosad Jyoti Prosad for Rs. 35,294. The income was reduced to Rs. 3,82,956. The IAC imposed a penalty of Rs. 22,500 holding that the su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the difference of opinion, the point of difference was referred to a third member. The third member agreed with the view of the judicial member in cancelling the penalty imposed under s. 271(1)(c) of the Act. He held that the IAC imposed the penalty wholly relying on the assessment order and the order of the AAC, but he himself did not bring on record any material to prove that the alleged loan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....celled. By reason of the majority view, the penalty was cancelled by the Tribunal. On the aforesaid facts, the two questions were referred to this court. The Supreme Court in the case of Brij Mohan v. CIT [1979] 120 ITR 1 held that where a penalty is imposed for concealment of particulars of income, it is the law ruling at the date on which the act of concealment takes place which is relevant. ....