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Section 274 of the Income-tax Act, 1961 - Penalty - Procedure for imposition of - Assessment years 1967-68 and 1968-69 - Whether in view of amendment made to section 274(2) ITO alone has jurisdiction to impose penalty in cases where concealment or furnishing of inaccurate particulars was upto Rs. 25,000 - Held, yes - Whether, therefore, in such a situation if order of penalty is passed by IAC, it would not be valid - Held, yes FACTS The ITO passed the assessment order far the relevant assessment years on 11-12-1970. Subsequently the income of the assessee for said years were assessed and penalty proceedings were initiated by the ITO and the matter was referred to the IAC under section 274(2) as the minimum penalty impossible was more than Rs. 1,000. The IAC accordingly, impose penalty for the said years. On second appeal, the Tribunal held that with the amendment of section 274(2), it was the ITO who had jurisdiction to pass a penalty order, and not the IAC. On reference: HELD After the amendment to section 274(2) the ITO alone had jurisdiction to impose penalty in cases where the concealment or furnishing of inaccurate particulars was up to Rs. 25,000. Thus in the instant case, the IAC had no jurisdiction to pass the penalty order. Note : The case was decided in favour of the assessee. CASE REVIEW CIT v. Om Sons [1979] 116 ITR 215 (All) followed and relied upon. CASE REFERRED TO CIT v. Om Sons [1979] 116 ITR 215 (All.). JUDGMENT C.S.P. Singh, J.-The Income-tax Appellate Tribunal, Delhi Bench "A", has referred the following question for our opinion: "Whether, on the facts and in the circumstances of the case, the orders of penalty passed by the IAC on 17-3-1973 were within time and within his jurisdiction having regard to the provisions contained in sections 274 and 275 of the Income-tax Act, 1961, and the amendments effected to those sections by the Taxation Laws (Amendment) Act of 1970?" The reference relates to the years 1967-68 and 1968-69. The assessment for both these years was completed, but subsequently was reopened under s. 148 of the Act. For the years 1967-68, it was completed on December 11, 1970, and for the year 1968-69, also on the same date. The…

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