Law:

Section:

Section 251, read with section 271(1)(c) of the Income-tax Act, 1961 [Corresponding to section 31(3) read with section 28(1)(c) of Indian Income-tax Act, 1922] - Commissioner (Appeals) - Powers of - Assessment year 1951-52 - ITO imposed penalty under section 28(1)(c) of 1922 Act without previous approval of IAC - AAC set aside order imposing penalty as without jurisdiction and directed ITO to take action according to law as he deemed necessary - Whether AAC had no power to make such direction and further, since ITO cannot, in law, proceed for imposition of penalty merely because AAC gives direction in this regard, impugned direction was to be set aside - Held, yes FACTS The ITO imposed penalty on the assessee under section 28(1)(c ) of the 1922 Act without previous approval of the IAC. The AAC held that the order imposing penalty was without jurisdiction but directed the ITO to take such action according to law. The Tribunal held that under section 31(3)(f) of the 1922 Act, the AAC had power in the case of an order under section 28 of the 1922 Act to either confirm or cancel or vary it so as either to enhance or reduce the penalty and this provision did not confer upon the AAC any jurisdiction to make the direction of the kind that he made in the appellate order. On this view, the Tribunal set aside the direction. On reference : HELD Section 31(3)(f) of the 1922 Act confers appellate jurisdiction with regard to an order under section 28 of the 1922 Act. Under it there is no power of making direction of the kind the AAC had done in the instant case. In the next place, the ITO cannot, in law, proceed for imposition of penalty under section 28(1)(c) of the 1922 Act merely because the AAC gives a direction in this regard. If in law he did not have any jurisdiction to take any further action he cannot validly take such action. The direction in the appellate order that the ITO should take such action according to law as he deemed necessary in the case might have confused the situation. The ITO was bound to take some action in accordance with the appellate direction. For this reason also the Tribunal was justified in setting aside the direction. Note : The case was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492