Law:

Section:

Section 271(1)(c) of the income-tax act, 1961-Penalty-For concealment of income-Assessment year 1966-67-Though assessee filed original return before 1-4-1968, last return was filed after 1-4-1968-Whether quantum of penalty to be imposed under section 271(1)(c) had to be on the basis of law which was in force in the assessment year 1966-67 and not on the basis of the amended law which came into force from 1-4-1968-Held, no Facts For the assessment year 1966-67, though the assessee had filed his first return before 1-4-1968, the last return was filed after 1-4-1968. The Tribunal held that the quantum of penalty to be imposed under section 271(1)(c) had to be on the basis of law which was in force in the assessment year 1966-67 and not on the basis of the amended law which came into force from 1-4-1968. On reference: Held Whenever the penalty proceedings are initiated, the quantum of penalty to be imposed is to be governed with reference to the date on which the return was filed. In the instant case, the fact that the original return was filed before 1-4-1968, did not make any difference since the last return was, admittedly, filed after 1-4-1968. Accordingly, the Tribunal was not justified in holding that the quantum of penalty to be imposed under section 271(1)( c) had to be on the basis of law which was in force in the assessment year 1966-67 and not on the basis of the amended law which came into force from 1-4-1968. Case review Brijmohan v. CIT [1979] 120 ITR 1 (SC) and CIT v. Monghyr Gun Mfg. Co-operative Society Ltd. [1983] 15 Taxman 580(Pat.) followed. Cases referred to Brijmohan v. CIT [1979] 120 ITR 1 (SC) and CIT v. Monghyr Gun Mfg. Co-operative Society Ltd. [1983] 15 Taxman 580(Pat.). B.P. Rajgarhia and S.K. Saran for the Applicant Arun Kumar Jha for the Respondent. . JUDGMENT SINHA J.-This is a reference made by the Tribunal, Patna Bench 'A', under section 256(1) of the Income-tax Act, 1961 ('the Act'), and a statement of the case has been duly submitted. The question of law referred for our opinion is as to "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the quantum of penalty to be imposed in…

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