1996 (2) TMI 9 - SC - Income Tax

Whether the amount of penalty imposable should have been worked out on the basis of the law in force at the time the return was filed and the delinquency of excluding the part of the income had been committed - Held yes

Summary

The Supreme Court allowed the appeal based on the decision in CIT v. Onkar Saran and Sons [1992] 195 ITR 1. The High Court held that the penalty should be based on the law in force when the Income-tax Officer initiated proceedings under section 271(1)(c). However, the Supreme Court ruled that the penalty should be calculated based on the law in force at the time of filing the return containing concealment or misstatement. The appeal was allowed with no costs.