1995 (8) TMI 7 - HC - Income Tax

Summary

The High Court of Allahabad considered whether the Inspecting Assistant Commissioner had jurisdiction to impose a penalty under section 271(1)(c) of the Income-tax Act for the assessment year 1973-74. The Tribunal had referred this question to the court. The court ruled that the Inspecting Assistant Commissioner did have the jurisdiction to pass the penalty order, based on the interpretation of the Taxation Laws (Amendment) Act, 1975. The court's decision was influenced by a previous case law and the principle that amendments to penal provisions operate prospectively. The apex court's decision in CIT v. Dhadi Sahu supported the view that the Inspecting Assistant Commissioner had the power to impose the penalty. Therefore, the court answered the reference in the negative, in favor of the Revenue.