9911796707
TMI Blog1972 (1) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 to the total income returned by the assessee. The assessment order was passed on January 21, 1964. At the end of the assessment order the Income-tax Officer recorded that action under section 271(1)(c) would taken separately. The assessee preferred an appeal to the Appellate Assistant Commissioner, but shortly thereafter, it made an application for permission to withdraw the appeal. Permission was denied by the Appellate Assistant Commissioner, and instead he required the assessee to furnish details in respect of the stocks available with it and also with its commission agent. After examining material now available, the Appellate Assistant Commissioner served a notice requiring the assessee to show cause why the income should not be enhan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner. The Commissioner of Income-tax as well as the assessee applied for a reference to this court, and accordingly the Tribunal has referred the following three questions, the first two being referred at the instance of the Commissioner of Income-tax and the third at the instance of the assessee : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the Inspecting Assistant, Commissioner did not have the jurisdiction to impose penalty in so far as it related to the enhancement made by the Appellate Assistant Commissioner ? 2. If the answer to question No. 1 is in the negative, whether, on the facts and in the circumstances of the case, reduction of penalty to Rs. 10,000 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty to the Inspecting Assistant Commissioner on February 18, 1964, it was the penalty case arising with reference, to what was discovered in that assessment proceeding. At that time, the Appellate Assistant Commissioner had not yet made any order disposing of, the appeal against the assessment order. Consequently, when the Inspecting Assistant Commissioner proceeded to exercise his powers under section 274(2) he did so on the case referred to him by the Income-tax Officer, that is to say, the penalty case arising with respect to the concealed income discovered at the stage of assessment by the Income-tax Officer. The question then is whether in disposing of this case the Inspecting Assistant Commissioner had jurisdiction to take into accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter for the imposition of penalty. (3) An Appellate Assistant Commissioner on making an order under this Chapter imposing a penalty, shall forthwith send a copy of the same to the Income-tax Officer." Section 271(1) confers power upon the Income-tax Officer as well as upon the Appellate Assistant Commissioner to take penalty proceedings. If the Income-tax Officer in the course of any proceedings under the Act before him is satisfied that any one of the defaults mentioned in clauses (a), (b) and (c) has been committed he may take proceedings for imposition of a penalty. Likewise, if the Appellate Assistant Commissioner is satisfied in the course of proceedings before him that such default has been committed, he may also take proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecuniary jurisdiction to the Inspecting Assistant Commissioner. No such situation is contemplated in a penalty proceeding commenced by the Appellate Assistant Commissioner. Besides, to recognise in the Inspecting Assistant Commissioner the power to impose a penalty in respect of concealed income discovered by the Appellate Assistant Commissioner (sic) of jurisdiction. On the one hand, as in the case before us, an Inspecting Assistant Commissioner could impose a penalty in respect of concealed income discovered by the Appellate Assistant Commissioner. On the other hand, the Appellate Assistant Commissioner himself could simultaneously proceed to impose a penalty. The statute does not deal with such a situation, and its silence in the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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