TMI Blog1977 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ices dated October 10, 1974, under section 131 of the Act and also to cancel and/or rescind the said purported warrant of authorization under section 132 of the Income-tax Act. He has also asked for a writ in the nature of certiorari calling upon the respondents to send the records of the case to ether with the notices for the aforesaid years and warrant of authorization may be quashed. There are also prayers for writ in the nature of prohibition and interim injunction. It appears that on August 30, 1974, a search of the petitioner's residences at 8, Mandeville Gardens, Calcutta, was made by the income-tax department at the instance of the respondent No. 3, Commissioner of Income-tax, West Bengal III, who purported to act under section 132 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . " Whereas in the course of proceedings before me for the assessment year 1967-68, it appears to me that you have concealed the particulars of your income or deliberately furnished inaccurate particulars of such income and whereas the penalty proceedings have to be referred to the Inspecting Assistant Commissioner of Income-tax according to sub-section (2) of section 274 of the Income-tax Act, 1961, you are hereby informed that the case for levy of a penalty under clause (c) of sub-section (1) of section 271 is being referred by me to the Inspecting Assistant Commissioner of Income-tax, Range III, Calcutta. Further proceedings in regard to the levy of penalty will take place before the said Inspecting Assistant Commissioner of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paragraph 17 of the affidavit that for the assessment year 1967-68, the petitioner filed a return on 6th October, 1971, disclosing his income from pension only. In the course of investigation it has been found as alleged that the petitioner, amongst others, concealed particulars of his income for the said assessment years from his profession, the income from interest and the notional income from fixed deposits. There were similar suppressions with regard to the returns filed for the assessment years 1968-69 and 1969-70. The returns for the said two assessment years were also filed on 6th October, 1971. Now, the grievance of the petitioner is that since the assessments for the aforesaid three years are still pending and since all the enqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... require any notice to show cause to be served on the petitioner before initiation of such penalty proceedings. The assessee is entitled to be heard before imposition of any penalty. Section 274 of the Act lays down the procedure to be followed in the matter of imposition of penalty. Sub-section (1) of section 274 lays down that no order imposing a penalty under Chapter XX I of the Income-tax Act shall be made until the assessee has been heard or has been given a reasonable opportunity of being heard. It is only the prima facie subjective satisfaction of the Income-tax Officer in the course of any proceedings under the Income-tax Act which is required for initiation of a penalty proceeding under section 271 of the Act. In this connection, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of assessment and reassessment. According to the petitioner, the present assessment proceedings for the years 1967-68, 1968-69 and 1969-70 are all barred under the provisions of section 153(1)(c) of the Act. I am unable to agree with such contention. The case of the petitioner, as it appears, falls within clause (c) of sub-section (1) of section 271 of the Act. It is being alleged by the income-tax department that the petitioner has concealed the particulars of his income or furnished inaccurate particulars of such income for the aforesaid three assessment years. That being the position, clause (b) of section 153 of the Act will be applicable and the period of limitation will be the expiry of eight years from the end of the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question is whether without determination of the amount of income of assessment, such a reference can be made to the Inspecting Assistant Commissioner. I have already pointed out that the initiation of penalty proceeding can be made in the course of proceedings under the Income-tax Act and that initiation of such a proceeding is not to wait till the completion of the assessment. Having regard to such position and also having regard to the averments made by the Income-tax Officer in paragraphs 14 and 17 in his affidavit, I do not think that the Income-tax Officer did anything wrong in referring the penalty proceeding to the Inspecting Assistant Commissioner before completing the assessment for the years concerned. In any event, this has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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