1977 (8) TMI 54

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....ct, 1961 (hereinafter referred to as "the Act"), this court directed the Cuttack Bench of the Income-tax Appellate Tribunal to state a case and refer the following question for the opinion of the court: " Whether the amount of penalty imposable should have been worked out on the basis of the law in force at the time the return was filed and the delinquency of excluding a part of the income had ....

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....the assessee and imposed a penalty of Rs. 13,500. It may be mentioned that the Income-tax Officer had in the order of reassessment included a sum of Rs. 42,000 as income from undisclosed sources and in the quantum appeal the Tribunal had upheld the addition of only Rs. 13,000 as cash credit. The assessee appealed to the Tribunal against the levy of penalty and contended that penalty had been im....

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....By the amendment, the following was substituted: " (iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of the income in respect of which the particulars have been concealed or inaccurate particulars have been furnished." Undoubtedly, the Amending Act has increased the quantum of ....

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....ion 271(1)(c) of the Act. Relying on the decision of the Constitution Bench of the Supreme Court in the case of Jain Brothers v. Union of India [1970] 77 ITR 107 (SC), the court observed-See [1976] 103 ITR 479, 484 (Orissa) : " The aforesaid observations of their Lordships leave absolutely no room for doubt that the penalty proceeding is to be initiated only on the completion of the assessment ....