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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Whether penalty for concealment of income in returns filed prior to 1-4-1976 was imposable as per law as it stood prior to its amendment with effect from 1-4-1976- Held, yes Facts In his returns for the assessment years 1974-75 and 1975-76 filed prior to 1-4-1976 the assessee concealed part of his income. In response to notices under section 148, he filed revised returns The ITO, after passing the reassessment orders, levied penalty under section 271(1)(c) and the same was confirmed by the AAC and the Tribunal albeit with a reduced quantum, which was determined as per law prior to its amendment with effect from 1-4-1976. On reference : Held It is well settled that it is the law in force on the date when concealment takes place that governs the penalty. Since in the instant case the original returns in which income was concealed were filed prior to 1-4-1976, the Tribunal correctly upheld the penalty levied on the basis of section 271(1)(c) as it stood prior to its amendment with effect from 1-4-1976. Case review Brij Mohan v. CIT [1979] 120 ITR 1 (SC) followed. Case referred to Brij Mohan v. CIT [1979] 120 ITR 1 (SC). MISC. CIVIL CASE NO. 1 OF 1982. Chaphekar for the applicant. R.C. Mukati for the Respondent. Order Sohani, J.-By this reference under section 256(1) of the Income-tax Act, 1961 ('the Act'), the Tribunal, Indore Bench, has referred the following questions of law to this Court for its opinion : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in upholding the quantum of penalty levied by the ITO on the basis of law applicable to section 271(1)(c) prior to its amendment on 1-4-1976 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the default of concealment of income from contract receipts had been committed at the time of the original return filed ?" 2. The material facts giving rise to this reference are as follows The assessee is assessed in the status of an individual. For the assessment years 1974-75, and 1975-76, the assessee filed…

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