1979 (9) TMI 7

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....oncerned with the following questions of law : "(1) Whether, on the facts and in the circumstances of the case , the Tribunal was justified in treating the penalties as having been imposed under section 221 of the Income-tax Act, 1961, and not under section 46(1) of the Indian Income-tax Act, 1922 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in hol....

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....AAC reduced the penalties for the aforesaid three years. The Department then filed appeals. It was argued on its behalf that the AAC should have rejected the assessee's appeals as the assessee did not pay the relevant takes before the filing of those appeals. The Tribunal, however, opined that the ITO had passed those orders under s. 221 of the I.T. Act, 1961, and not under s. 46(1) of the I....

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.... Mr. A. K. Roy Chowdhury, learned counsel for the assessee, disputes the aforesaid arguments and argues that the Act of 1922 does not apply in this case in view of s. 297(2), cl. (g), read with cl. (j) of that section, of the I.T. Act, 1961. He further argues that an answer to the aforesaid questions should be given in favour of the assessee in view of the judgment of the Supreme Court in the c....

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....1962, has to be initiated under the Act of 1961 and that the penalty may be imposed under that Act. The Supreme Court also held that there was every justification for providing in cls. (f) and (g) of s. 297(2) of the I.T. Act, 1961, that the date of completion of the assessment would be determinative of the enactment under which the proceedings for penalty should be held. Section 46(1) of the I....