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Section 271(1)(a) of the Income-tax Act, 1961 - Penalty - For late filing of return - Assessment year 1961-62 - Whether where assessment was completed after 1-4-1962, penalty had to be computed under 1961, Act though assessment period related to 1922 Act, and, there could not be levy of penalty partly under 1922 Act and partly under 1961 Act - Held, yes FACTS For the assessment year 1961-62 return was due by 30-8-1961, but it was filed on 4-11-1963. The Assessing Officer levied penalty under section 271(1)(a) of Rs. 19,142, being 50 per cent. of the tax which would be payable by the firm. On appeal, the Appellate Assistant Commissioner reduced the penalty. On a further appeal, the Tribunal adopted a curious course. It levied the penalty up to 1-4-1962 (the day on which the 1961 Act came into force) under the 1922 Act and for the default after 1-4-1962, under section 271(1)(a) of the 1961 Act. On reference : HELD Section 271 of the 1961 Act would apply to the instant case because the assessment was completed after 1-4-1962. Thus, the view adopted by the Tribunal could not be sustained. There was no warrant for holding that part of the penalty would be under the 1922 Act and part under the 1961 Act. Note: Decision in favour of revenue. CASES REFERRED TO: Jain Bros. v. Union of India [1970] 77 ITR 107 (SC) and CIT v. Singh Engineering Works (P.) Ltd. [1970] 78 ITR 90 (SC). JUDGMENT The Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following two questions of law for our opinion: "(1)Whether the substantive law of penalties could be held to be retrospective in character even in the absence of a specific statement in the Act which renders it retrospective? (2)Whether the same substantive law as is operative from April 1, 1962, onwards is to be applied in respect of the offences committed prior to March 31, 1962?" The assessment year in question is 1961-62. A notice was issued under section 22(2) of the Indian Income-tax Act, 1922 (hereinafter referred to as "the 1922 Act"), which was served on 26th July, 1961, asking the assessee-firm, Messrs. National Exhibitors, Amritsar, to file their return. The return was due in terms of the notice by 30th…

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