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TMI Blog1970 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be deemed to have been issued under the corresponding provision of the 1961 Act ? 2. Whether, on the facts and in the circumstances of the case, the notice under section 274(1), read with section 271(1)(a) of the Income-tax Act, 1961, issued on April 27, 1963, constituted a valid commencement of proceedings within the meaning of section 275 of the Act ? " The assessee is a Hindu undivided family carrying on trade in timber in the States of Jammu a and Kashmir and Himachal Pradesh. The relevant assessment year is 1958-59 and in connection therewith a notice dated May 10, 1958, under section 22(2) of the Indian Income-tax Act, 1922, was duly served on the assessee. In accordance with this notice, the return was due to be filed on o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payable for 10 months of delay in filing the return. On appeal, the Appellate Assistant Commissioner, Ambala Range, upheld the imposition of the penalty but reduced the amount thereof to Rs. 11,372. However, on further appeal, the contention of the assessee that the penalty notice had not been issued in the course of assessment proceedings and therefore penalty proceedings were not leviable under the new Act, found favour with the Tribunal. It was held that the notice under sections 271/274 issued on the 27th of April, 1963, was long after the completion of assessment proceedings and there was consequently no valid commencement of penalty proceedings which were held to be unsustainable and hence the appeal was allowed : vide the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ony and so read the only conclusion possible is that for the imposition of a penalty in respect of any assessment for the year ending on March 31 1962, or any earlier year which is completed after the first day of April, 1962, the proceedings have to be initiated and the penalty imposed in accordance with the provisions of section 271 of the Act of 1961. Thus the assessee would be liable to a penalty as provided by section 271(1) for the default mentioned in section 28(1) of the Act of 1922 if his case falls within terms of section 297(2)(g) " In view of the above pronouncement and the admitted fact that the assessment year is prior to the 1st of April, 1962, and the assessment proceedings have been completed after that date, it is obviou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision of this Act, be deemed to have been entered into, made, granted, given or issued under the corresponding provision aforesaid and shall continue in force accordingly." Construing section 297 as a whole it is evident that this first repealed the earlier Income-tax Act of 1922 and by virtue of sub-clause (2) introduced a large number of saving clauses : vide sub-clauses (a) to (m) of the same. Such a saving clause or clauses are not unusual features of a statute which repeals earlier legislation on the point. Being a case of express repeal, section 6 of the General Clauses Act, 1897, would well be attracted even if no specific saving clause had been indicated. That apart, the principle underlying the said provision and the manner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timately be considered as a good and valid notice issued under the new Act for the purpose of invoking sections 271 and 274 thereof. Reliance in this context has rightly been placed on a Division Bench judgment of Rajasthan in Indra Co. v. Union of India, where, specifically construing section 297(2)(k), it is observed as follows by the Bench : " To our mind, this saving provision applies to the case and the legislature could not in all probability, have intended that the notices already issued under the provisions of section 22(1) of the old Act should be taken to be wiped out with the coming into force of the new Act. " In fairness to Mr. Punchi, we must notice his contention that assuming that the language of sub-section (k) covers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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