Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment years 1966-67 and 1967-68 - Whether for determining quantum of penalty leviable under section 271(1)(c), law applicable is law existing on date of concealment of income, that is, date of filing return of income - Held, yes Section 274 [As amended by Taxation Laws (Amendment) Act, 1970], read with section 271(1)(c) of the Income-tax Act, 1961 - Penalty - Procedure for imposition of - Assessment years 1966-67 and 1967-68 - On 22-02-1972 IAC passed order under section 271(1)(c) imposing penalties on assessee of Rs. 22,000 and Rs. 16,000 for assessment years in question respectively - By amendment to section 274(2) with effect from 01-04-1971, jurisdiction of ITO to impose penalty where concealed income did not exceed Rs. 25,000 was restored - Whether since on 22-02-1972 concealment of income by assessee in respect of each of respective assessment year did not exceed Rs. 25,000, IAC had no jurisdiction to pass order under section 271(1)(c) - Held, yes FACTS The assessment for the assessment year 1966-67 was made on 18-12-1969. In the assessment order, it was directed that the penalty notice under sections 274/271(1)(b) and 271(1)(c) might be issued. In respect of the assessment year 1967-68, the ITO passed order on 25-02-1970. In the said assessment order, the ITO also mentioned that penalty notice under section 274, read with sections 271(1)(b) and 271(1)(c) had already been issued. The said penalty proceedings were referred by the ITO to the IAC. By an order dated 22-02-1972, the IAC levied a penalty of Rs. 22,000 on the assessee under section 271(1)(c) in respect of the assessment year 1966-67 and a penalty of Rs. 16,000 under section 271(1)(c) in respect of the assessment year 1967-68. On appeal, the assessee contended that IAC had no jurisdicton to impose penalty on 22-02-1972, as by that time section 274(2) had been amended by the Taxation Laws(Amendment) Act, 1970, with effect from 01-04-1971, where by the jurisdiction of the ITO to impose penalty under section 271(1)(c) was restored and, therefore, the ITO could impose penalty if the concealment of income of the…

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