1979 (10) TMI 12

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....aw in holding that for the purpose of levy of penalty under section 271(1)(c) of the Income-tax Act, 1961, the quantum of penalty is to be worked out in accordance with the law which was prevailing in the year of assessment and that the amendment with effect from April 1, 1968, will not have retrospective operation for any of the three years under reference ?" The material facts giving rise to this reference as set out in the statement of the case are as follows: The assessee is an individual and the assessment years involved are 1963-64, 1964-65 and 1965-66. The original assessment in respect of the aforesaid years were completed by the ITO. Subsequently, the ITO reopened the assessment for these years and notices under s. 148 of the....

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....bsp;                        ------                                            Total : 19,400                                                    ------ The addition ma....

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.... 30% of the tax sought to be avoided in respect of each of the three years under appeal before it. On these facts, at the instance of the Revenue, the Tribunal has referred the aforesaid question of law for the opinion of this court. It is not disputed that returns in response to the notices under s. 148 of the Act were filed by the assessee after April, 1, 1968, i.e., on April 20, 1968, for all the three assessment years. The penalty proceedings were initiated for the concealment of income in the returns filed by the assessee on April 20, 1968. It also cannot be disputed that penalty is imposed on account of a wrongful act committed by the assessee.. It is well settled that penalty is imposable in accordance with the law in force on the....

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.... filed by the assessee in response to a notice under s. 148 of the Act will relate back to the assessment year for which the return was filed and that the view taken by us requires reconsideration. We have given our anxious consideration to the decisions relied upon by the learned counsel for the assessee and with respect we are unable to agree with the view taken in the decisions referred to above. The learned counsel for the assessee was unable to bring to our notice any provision of law for holding that even though penalty proceedings are initiated in connection with the return filed in response to a notice under s. 148 of the Act, the default will be attributable to the return filed in the original assessment proceedings or that the sai....