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Issues:
1. Whether a fresh opportunity of being heard is required for passing a penalty order under section 28(1)(c) of the Indian Income-tax Act, even if the predecessor had given a reasonable opportunity? 2. Whether the imposition of the same penalty is justified when the concealed income amount has been revised? Analysis: Issue 1: The case involved penalty proceedings initiated under section 28(3) of the Income-tax Act by the Income-tax Officer. The successor Income-tax Officer imposed a penalty without giving a fresh opportunity of being heard to the assessee. The court examined the provisions of section 28(3) and section 5(7C) of the Act. It was held that a penalty proceeding can be continued by the succeeding officer from the stage left by the predecessor. The court referred to a previous case where it was established that a further opportunity of being heard is not required if the assessee did not seek to reopen the proceeding. The court rejected the argument that a fresh opportunity was necessary, stating that no provision or precedent supported this claim under the principles of natural justice. Issue 2: Regarding the quantum of penalty imposed, the counsel for the assessee argued that the penalty amount should have been reduced based on the revised concealed income amount determined by the Tribunal. However, the court found that this was not a question of law. The court emphasized that the Tribunal, being aware of the revised concealed income, affirmed the penalty amount. As the Tribunal's decision was based on the known facts, it was not a matter for legal consideration. Therefore, the court declined to answer the second question, stating it should not have been referred for consideration. In conclusion, the court answered the first question in the negative, favoring the Revenue, and declined to answer the second question. No costs were awarded in the case.
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