1979 (10) TMI 26

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..... come-tax has applied under s. 27(3) of the W.T. Act, 1957, for a reference of the following question Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the provisions of s. 18(1)(a), as they stood before the amendment, should be the basis for the computation of penalty under s. 18(1)(a) notwithstanding the fact that the default co .....

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..... ive years. For calculating the amount of penalty, he took into account the provision as it Was in force on the date he levied the penalty. The assessee appealed to the AAC, who confirmed the penalty so levied. Thereafter, the matter was taken on appeal before the Tribunal and, relying on a decision of this court in CGT v. C. Muthukumaraswamy Mudaliar [1975] 98 ITR 540, the assessee contended that .....

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..... has taken the view that the quantum of penalty to be levied would have to be calculated with reference to the law that was in force at the time when the default was committed. The Supreme Court also, in a decision dated August 3, 1979, in Brij Mohan v. CIT [1979] 120 ITR I (SC) has gone into this question on the following facts In that case, the assessee, a partner, filed a return of his total inc .....

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..... opinion on the point in the decisions in Hajee K. Assainar v. CIT [1971] 81 ITR 423 (Ker) and in Saeed Ahmad v. IAC [1971] 79 ITR 28 (All). The latter decision had also been followed by the Punjab and Haryana High Court in Income-tax Reference No. 45 of 1971-CIT v. Bhan Singh Boota Singh [1974] 95 ITR 562. The Supreme Court observed (p. 4 of 120 ITR): In the case of a penalty, however we must rem .....

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..... . In the present case., the default occurred immediately on the day following the day on which the return was due. Taking into account the date of default, the penalty as reduced by the Tribunal was proper and legal. Therefore, there is no referable question of law that can be said, to arise out of the Tribunal's order. The petitions are rejected with costs. Counsel's fee Rs. 250 one set.
Cas .....

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