Law:

Section:

Section 274, read with section 271(1)(c) of the Income-tax Act, 1961 - Penalty - Procedure for imposition of - Assessment years 1967-68 and 1968-69 - ITO referred matter to IAC for initiation of penalty proceedings - During pendency of penalty proceedings, section 274(2) was amended raising jurisdiction of ITO to impose penalty up to Rs. 25,000 - IAC however imposed penalty of Rs. 17,000 and 8,200 respectively for relevant assessment years - Tribunal taking a view that IAC had been divested of his jurisdiction to impose penalty on sums below Rs. 25,000, deleted penalty - Whether once jurisdiction had been conferred in absence of any specific provision, IAC could not be divested of jurisdiction to impose penalty on sums below Rs. 25,000 - Held, yes - Whether, therefore, IAC was fully within his powers to impose penalty - Held, yes FACTS The original assessment of the assessee for the relevant two years was completed in May 1970. Later, the ITO came to learn that the assessee had not disclosed certain payments received by him during the relevant years. A proceeding under section 147 was, therefore initiated. The ITO also referred matter to the IAC for penalty proceedings. While the penalty proceeding was pending, section 274(2) was amended raising the jurisdiction of the ITO to impose penalty up to Rs. 25,000. The IAC was vested with jurisdiction to impose penalty only of sums above Rs. 25,000. While the penalty proceeding was still going on, the assessee was pursuing his remedy in quantum appeal. After the quantum appeal had been disposed of, the IAC by his order dated 29-8-1973, imposed penalties of Rs. 17,000 and Rs. 8,200 respectively for the relevant assessment years. On appeal, the Tribunal taking a view that the IAC had been divested of his jurisdiction to impose penalty on sums below Rs. 25,000, deleted the penalty. On reference : HELD Once a jurisdiction had been conferred in the absence of any specific provision, the IAC could not be divested of the jurisdiction to impose penalty on sums below Rs. 25,000. The Tribunal was not correct in holding that the IAC did not have jurisdiction to levy penalty in view of the amended provision of section 274. The…

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