Law:

Section:

Section 271(1)(c) of the income-tax act, 1961-Penalty-For concealment of income-For assessment year 1964-65, ito completed assessment on basis of return filed by assessee-On 30-10-1969 assessee filed another return in response to ito's notice under section 148-In reassessment proceedings certain additions were made by ito-Whether default was attributable to return of income filed in course of original assessment proceedings-Held, no-Whether penalty for concealment was leviable under law in force on date of filing of return in response to notice under section 148-Held, yes Facts On the basis of the return of income filed by the assessee for the assessment year 1964-65, the order of assessment was passed. Subsequently, the ITO reopened the assessment and in response to the notice under section 148, the assessee filed a return on 30-10-1969. In reassessment proceedings the ITO made certain additions to the income originally assessed. The ITO held that penalty was leviable on the assessee for concealment of income in the return filed on 30-10-1969, in response to the notice issued under section 148. However, the Tribunal accepted the assessee's contention that the amended provision of section 271(1)(c), which came into force on 1-4-1968, would not be attracted as the default would be attributable to the return of income filed in the course of original assessment proceedings. On reference : Held It is well settled that it is the law in force on the date on which a wrongful act is committed which determines the penalty. In the instant case, the wrongful act took place on 30-10-1969, when the return in response to the notice under section 148 was filed by the assessee. Therefore, the Tribunal erred in holding that the law applicable for imposition of penalty would be that contained in section 271(1)(c ) prior to its amendment from 1-4-1968 and that default would be attributable to the return filed in the original assessment proceedings. Case review Addl. CIT v. Balwant singh Sulakhanmal [1981] 127 ITR 597 (MP) followed. Case Referred to Addl. CIT v. Balwant Singh Sulakhanmal [1981] 127 ITR 597 (MP). MISC. CIVIL CASE NO. 460 OF 1976. JUDGMENT SOHANI, J.-By this…

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