Law:

Section:

Section 274(2) [as it stood prior to its omission with effect from 1-4-1976] of the income-tax act, 1961 - penalty-jurisdiction of ito-whether jurisdiction of ito will be governed by law in force on date of initiation of penalty proceedings rather than by law in force on date of filing of return-held, yes Facts For the assessment year 1968-69, the assessee filed its return on 16-4-1970. The ITO completed the assessment on 27-3-1972 and also initiated penalty proceedings under section 271(1)(c ) as there had been concealment of income in respect of an amount which did not exceed Rs. 25,000. Thereafter, on 26-3-1974, the ITO levied a penalty of Rs. 10,000 under section 271(1)(c) on the assessee. On appeal, the AAC set aside the penalty levied holding (i) that in view of the provisions of section 274(2) as they stood before 1-4-1971, the ITO had no jurisdiction to levy the penalty since the maximum penalty imposable exceeded the sum of Rs. 1,000 ; and (ii) that the competent authority to levy the penalty was the IAC. On further appeal by the revenue, the Tribunal confirmed the AAC's order, holding that the law governing the imposition of penalty for concealment of income was the law that was in force on the date on which the return in which concealment was said to have been taken place was furnished before the ITO and as such the amended section 274(2) could not apply in the instant case. On reference under section 256(2) : Held The point of time material for determining which authority is competent to exercise the power of imposition of penalty for the offence under section 271(1)(c) is the date of initiation of the penalty proceedings which would ordinarily be the date of Completion of the assessment itself. Accordingly, the jurisdiction of the ITO to impose penalty under section 271(1)(c) read with section 274(2) is governed by the state of law as obtaining on the date of initiation of the penalty proceedings. In the instant case, inasmuch as the amendment introduced in section 274(2) by the Taxation Laws (Amendment) Act, 1970 had come into force prior to the initiation of the penalty proceedings, and the amount of income in respect of which concealment had…

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