Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessee filed return before 1-4-1968, but submitted revised return in pursuance of notice under section 148 after 1-4-1968, when penalty provisions stood amended - Whether for purposes of levying penalty, law in force prior to 1-4-1968 when original return was filed, would be applicable and not the one existing on date when revised return was filed - Held, yes FACTS While accepting the contention of the assessee, the Tribunal held that the law applicable in case of penalty for concealment of income under section 271(1)(c), would be the law in force on the date when the original return was filed and not the one existing on the date when the revised return was filed in pursuance of a notice under section 148, i.e., the law as amended with effect from 1-4-1968. On reference at the instance of the revenue challenging the view taken by the Tribunal: HELD In Addl. CIT v. Mewa Lal Sankatha Prasad [1979] 116 ITR 356, the Allahabad High Court took the view that for the purpose of levy of penalty for concealment of income under section 271(1)(c ), the law applicable would be the law prevailing on the date of filing of the original return and not that existing on the date of filing of the subsequent return in pursuance of a notice under section 148, and that if the original return was filed prior to 1-4-1968, penalty would have to be calculated under the law as it stood prior to that date. In Brij Mohan v. CIT [1979] 120 ITR 1, the Supreme Court has also laid down that penalty is imposed on account of commission of a wrongful ad and it is the law operating on the date on which the wrongful act was committed which determines the penalty. In view of these decisions, it was to be held that the Tribunal was justified in taking the view that the law applicable in the instant case was the one prevailing prior to 1-4-1968. CASE REVIEW Addl. CIT v. Mewa Lal Sankatha Prasad [1979] 116 ITR 356 (All), CIT v. Arunachalam Chettiar (A.Rm.A.L.A.) [1932] AIR 1932 Mad 433; ILR 55 Mad 827, CIT v. Badridas Ramrai Shop [1939] 7 ITR 613 (Nag.), CIT v. Angara Satyam [1959] 37 ITR 230 (AP), Ayyasami Nadar and…

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