1979 (9) TMI 23

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....efault will be attributable to the return filed in the original assessment proceedings even if there was a concealment in the revised return ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the law applicable for the imposition of penalty in this case would be as contained in section 271(1)(c) prior to its amendment on April 1, 1968, and thereby directing that the quantum of penalty would be calculated with reference to the amount of tax sought to be avoided ? " 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 year in question is 1959-60. A return of his income for the said a....

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....ped assessment.-(1) Before making the assessment, reassessment or recomputation under section 147, the Income-tax Officer shall serve on the assessee a notice containing all or any of the requirements which may be included in a notice under subsection (2) of section 139 ; and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section. (2) The Income-tax Officer shall, before issuing any notice under this section, record his reasons for doing so." Section 139(2) of the Act, referred to in the aforesaid section, reads as under 139. Return of Income.-(1)... (2) In the case of any person who, in the Income-tax Officer's opinion, is assessable under this Act, whe....

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....ble to the penalty proceedings would be that relevant to the assessment year even though the return filed in response to the notice under s. 148 of the Act was after 1st April, 1968. This contention was rejected by the IAC, who observed as follows: The law applicable will be that which is relevant at the point of time when offence is committed. In this case the material point of time will be when the return of income was filed in response to notice u/s. 147/ 148." In these circumstances, it is difficult to appreciate the finding of the Tribunal that the default would be attributable to the return filed in the original assessment proceedings. No provision of law has been brought to our notice nor has it been referred to by the Tribunal....