Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1958-59 - ITO having found on evidence that assessee had concealed particulars of his income, referred matter to IAC for imposing penalty - IAC levied penalty under section 271(1)(c) - Tribunal confirmed penalty - Whether since assessment was completed on 29-3-1963 i.e., after coming into force 1961 Act, penalty could be validly imposed under section 271(1)(c) for assessment year in question - Held, yes FACTS The ITO who completed the assessment on 29-3-1963, having found on evidence that the assessee had concealed the particulars of his income, referred the matter to the IAC under section 274(2) relying upon the provisions of section 297(2)(g) because the assessment was completed after the 1961 Act came into force. The IAC levied penalty under section 271(1)(c). On appeal, the Tribunal confirmed the penalty and declined to make a reference. On application under section 66(2). HELD Although the assessment year was 1958-59, the assessment in instant case was made on 29-3-1963. That being so, if the penalty was leviable, the penalty had to be levied under section 271(1)(c) as provided by section 297(2)(g). Therefore, for the assessment year 1958-59 penalty under section 271(1)(c) could be validly imposed on the assessee. Note: Decision was in favour of the revenue. CASE REFERRED TO Jain Bros v. Union of India [1970] 77 ITR 107 (SC). JUDGMENT Pandey, J.-As directed under section 66(2) of the Indian Income-tax Act, 1922, the Income-tax Appellate Tribunal, Bombay, has referred to this court for its opinion the following question of law: "Whether for the concealment of income for the assessment year 1958-59 a penalty under section 271(1)(c)of the Income-tax Act, 1961, could be validly imposed on the assessee?" The material facts giving rise to this reference are these. The relevant assessment year is 1958-59, the corresponding account year being the one ending on March 31, 1958. The assessee is a practising advocate who takes up income-tax and sales tax cases. For the relevant account year he showed by estimate his income to be Rs. 5,000. He claimed that he had not…

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