1978 (5) TMI 19

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..... osition of penalty of Rs. 10,000 on him under s. 271(1)(c) read with s. 274(2) of the Act by the IAC of Income-tax, opposite party No. 2, for the assessment year 1968-69. Assessee holds a moiety share in a registered firm by name M/s. Capital Watch and Radio Emporium. For the assessment year 1968-69, the ITO found the assessee to have invested a sum of Rs. 22,000 in his capital account. He accept .....

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..... fer the case to the Inspecting Assistant Commissioner who shall, for the purpose, have all the powers conferred under this Chapter for the imposition of penalty. " Upon amendment, the provision read thus : " Notwithstanding anything contained in clause (iii) of sub-section (1) of section 271, if in a case falling under clause (c) of that sub-section, the amount of income (as determined by the In .....

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..... y this court on November 28, 1973, upon a finding that no question of law arose out of the said application. It may be stated that at no stage it was argued on behalf of the assessee that the IAC had lost jurisdiction to deal with the penalty matter in view of the amendment with effect from April 1, 1971. In the meantime, in the case of CIT v. Dhadi Sahu [1976] 105 ITR 56 (Orissa), a Bench of thi .....

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..... on asking for quashing of the imposition of penalty on the ground that the statutory authority had no jurisdiction to exercise or alternatively to issue a direction to the Tribunal to rectify the mistake. On the ratio of the decision of this court in Dhadi Sahu's case [1976] 105 ITR 56 (Orissa), the imposition of, penalty in the matter is admittedly without jurisdiction. Learned standing counsel .....

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..... to the petitioner to raise the contention which was raised in Dhadi Sahu's case. But that contention not having been canvassed and the imposition of penalty having become final, we are not prepared to interfere in the matter at this stage, It is expedient that the matters which have become final should not be allowed to be reopened merely because an interpretation has teen given to the statutory .....

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