TMI Blog1979 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961, the quantum of penalty is to be worked out in accordance with the law which was prevailing in the year of assessment and that the amendment with effect from April 1, 1968, will not have retrospective operation for any of the three years under reference ?" The material facts giving rise to this reference as set out in the statement of the case are as follows: The assessee is an individual and the assessment years involved are 1963-64, 1964-65 and 1965-66. The original assessment in respect of the aforesaid years were completed by the ITO. Subsequently, the ITO reopened the assessment for these years and notices under s. 148 of the Act were given to the assessee. In response to the said notices, the assessee filed returns for the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the IAC imposing penalties. The Tribunal held on facts that the assessee furnished inaccurate particulars of the income and, therefore, he was clearly guilty of the default under s. 271(1)(c) of the Act and the penalty was clearly attracted. As regards the quantum of penalty the Tribunal held that as the returns at the original stage were filed before April 1, 1968, and as the default was to be attributed only to these returns the amendment to s. 271(1)(c) of the Act, which came into effect from April 1, 1968, will not be applicable as that amendment will not have any retrospective operation. In this view of the matter, the Tribunal reduced the quantum of penalty to 30% of the tax sought to be avoided in respect of each of the three y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onse to the notice under s. 148 of the Act after April 1, 1968, the penalty proceedings would be governed by s. 271(1)9c) of the Act as amended by the Finance Act, 1968, notwithstanding that the said return related to an assessment year prior to April 1, 1968, or that the assessee had initially filed return in which also the income was concealed. The learned counsel for the assessee relied upon the decisions in CIT v. Gopal Krishna Singhania [1973] 89 ITR 27 (All), CIT v. Ram Acha Ram Sewak [1977] 106 ITR 144 (All), Addl. CIT v. Onkar Saran [1979] 116 ITR 317 (All) and CIT v. A. Rahman [1979] 119 ITR 475 (Pat) and submitted that the concealment of income in the return filed by the assessee in response to a notice under s. 148 of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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