1976 (12) TMI 49

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....e-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 : " Whether, on the facts and in the circumstances of the case and on a proper interpretation of section 297(2)(g) of the Income-tax Act, 1961, penalty could be imposed under section 271(1)(c) of the said Act in respect of assessments completed under section 23(3) read with section 34(1)(a) of the 1922 Act ? " We are conce....

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....th January, 1965, imposed penalties of Rs. 1,401 Rs. 2,689, Rs. 8,007 and Rs. 9,191, respectively, for each of the four assessment years in question. The assessee, thereafter, appealed to the Tribunal. The Tribunal was of the view that there was no proceeding under the 1961 Act and the condition precedent for the Inspecting Assistant Commissioner assuming jurisdiction under section 271(1)(c), the....

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.... therefore, were void ab initio. Before us Mr. Joshi on behalf of the Commissioner relied on the provisions contained in section 297(2)(g) of the Act of 1961. On behalf of the assessee the learned counsel submitted but not very strenuously that the said provision was not applicable but that the case would be governed by the provisions contained in clause (f) of section 297(2). Both these provisio....

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....1, which defines " assessment " as inclusive of reassessment, we are of opinion that the proceedings would be governed by the later section, i.e., section 297(2)(g), and not by section 297(2)(f) as contended by the learned advocate for the assessee. It is also important to bear in mind that the provisions for penalty would not have been attracted but for the Income-tax Officer issuing notices unde....