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TMI Blog1980 (3) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ed penalty proceedings and referred the matter to the IAC for action according to law. The IAC in his turn issued a notice under s. 274 r/w s. 271(1)(c) of the Act to the assessee. The assessee filed his reply. He submitted that an appeal before the Tribunal against the additions sustained by the AAC was pending and secondly it was submitted that the whole dispute revolved round the question of purity of ornaments by experts and the evidence with the application for selling the released ornaments at lower rates. The IAC after considering the pleas of the assessee observed that so far as the argument of purity is concerned, the ITO, brought on record that the assessee was selling his goods to his customers on clear understanding that they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad, which Certified the purity in the lot at only 62 per cent. The said lot was sold to M/s Radhe Mohan Rajan Saraf, Allahabad vide their bill No. 1812 dt. 23rd Feb., 77. The AAC has considered this evidence and held that it is not conclusive that the entire lot of silver was only of 62 per cent purity and the silver which were got melted at Allahabad could not be identified that they were the same ornaments which were seizes by the Department from the possession of the appellant and subsequently released. Therefore, this argument has no force." 3. It may be observed that the assessee filed appeal against this order of the IAC before the Tribunal on 23rd Feb., 1979 but for the sake of abundant caution the assessee filed another appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the IAC had no jurisdiction to impose penalty after 1st Apri, 1976 and the Tribunal had the jurisdiction to hear appeals against the orders passed by the IAC and for that he cited some Judgments of the various benches of the Tribunal reported in Current Tax Reporter Bombay Motors vs. ITO(3), Tax Tribunals judgment, Society Hosiery Factory vs. ITO(4), and Smt. Urmila Devi Shriya vs. WTO(5). He also relied on a decision by their lordships of the Madhya Pradesh High Court in the case of Chilluram Hariram,(1) wherein their lordships have held as under: 'An appeal is the right of entering a superior Court and invoking its aid and interposition to redress an error of the Court below and though procedure does surround an appeal, the cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is commences and although it may be actually exercised when the adverse judgment is pronounced, such right is to be governed by the law prevailing at the date of the institution of the suit or proceeding and not by the law that prevails at the date of its decision or at the date of the filing of the appeal and this vested right of appeal can be taken away only by a subsequent enactment, if it so provides expressly or by necessary intendment and not otherwise. 5. In the case under dispute before us facts are that the assessment order was passed on 31st March, 1976 and in the last Para of that assessment order, the ITO has observed as under. "Penalty proceedings under s. 271(1)(c) r/w s. 274 have been initiated for the income not disclose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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