9911796707
TMI Blog1979 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... vy of penalty under section 271(1)(c) of the Income-tax Act, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 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 years under appeal before it. On these facts, at the instance of the Revenue, the Tribunal has referred the aforesaid question of law for the opinion of this court. It is not disputed that returns in response to the notices under s. 148 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 will relate back to the assessment year for which the return was filed and that the view taken by us requires reconsideration. We have given our anxious consideration to the decisions relied upon by the learned counsel for the assessee and with res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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