TMI Blog1988 (12) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... lty under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), after the deletion of section 274(2) of the Act by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976. The facts, in so far as they are relevant here, are that on April 15, 1974, the Income-tax Officer finalised the assessment for the year 1963-64. Later, on January 31, 1978, he m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... celling the order passed by the Inspecting Assistant Commissioner on December 15, 1979, levying penalty of Rs. 42,339 under section 271(1)(c) of the Income-tax Act on the ground that the Inspecting Assistant Commissioner could not levy such penalty after April 1, 1976 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in ignoring the fact that the pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty. The Inspecting Assistant Commissioner imposed a penalty but the Tribunal cancelled it on the ground that both at the time when the penalty proceedings were referred to the Inspecting Assistant Commissioner and he assumed jurisdiction and also at the time when the order was passed, that is, February 25, 1978, he had no jurisdiction in view of the deletion of sub-section (2) of section 274 with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H) deserved reconsideration in view of the Full Bench decision of the High Court of Kerala in CIT v. P. I. Issac [1987] 168 ITR 793, where somewhat contrary view appears to have been taken. We are, however, not inclined to agree to this view and prefer instead to follow the judgment of our own Full Bench. The reference is accordingly answered in the negative, in favour of the Revenue and agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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