Law:

Section:

Section 18(1)(c), read with section 18(3) of the Wealth-tax Act, 1957 - Penalty - For concealment of income - Assessment year 1974-75 - WTO forming opinion that assessee was guilty of concealment of income, initiated penalty proceedings under section 18(2)(c) - He referred matter to IAC on 22-9-1974 - IAC, vide order dated 28-3-1977 imposed penalty - Assessee contended that in view of amendment in section 18(3) which came into force with effect from 1-4-1976, IAC had no jurisdiction to impose penalty after that date - Whether since, amendment was made in section 18(3) during pendency of reference, it would not invalidate pending reference proceedings - Held, yes - Whether, therefore, IAC had jurisdiction to pass penalty order on 28-3-1977 - Held, yes - Whether, however, finding of Tribunal to effect that there was no concealment of income as assessee had disclosed all relevant facts, was a finding of fact and no question of law arose therefrom - Held, yes FACTS The WTO was of the view that the assessee was guilty of concealment of certain amount and he accordingly initiated penalty proceedings under section 18(1)(c). As the amount of concealment was in respect of an amount of more than Rs. 25,000, he referred the matter to the IAC on 22-9-1974. The IAC vide his order dated 28-3-1977, imposed a penalty upon the assessee. Before the Tribunal, the assessee contended that in view of the amendment in section 18(3) which came into force with effect from 1-4-1976, the IAC had no jurisdiction to impose the penalty after that date. It was also contended that there was no concealment as all the necessary facts were disclosed in the return. The Tribunal upheld both the contentions of the assessee and cancelled the order of the IAC imposing penalty. On reference : HELD In the instant case when the reference was made, the IAC had the jurisdiction. The amendment was made in section 18(3) during the pendency of the reference. This amendment would not invalidate the pending reference. However, as regards the finding of the Tribunal that factually there was no concealment so far as the assessee was concerned and that he had disclosed all the facts, no question of law arose from…

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