9911796707
TMI Blog1985 (8) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... order recording satisfaction about the concealment of income before the change of law on April 1, 1976 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Inspecting Assistant Commissioner acted without jurisdiction in passing the penalty order under section 27l(1)(c) read with section 274(2) of the Income-tax Act, 1961, and that the said order is bad in law ? " This reference relates to the assessment year 1975-76. The assessee derives income from purchase of old silver ornaments and the sale thereof after converting them into new ones. There was a search in the business and residential premises of the assessee on October 8 and 9, 1974, when certain articles were seized fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from April 1, 1976. This contention of the assessee has been accepted by the Tribunal and the penalty imposed by the Inspecting Assistant Commissioner has been set aside. Hence, this reference at the instance of the Revenue to answer the aforesaid questions. The question really is whether the Income-tax Officer was empowered to make a reference to the Inspecting Assistant Commissioner after the amendments made in the Act with effect from April 1, 1976, enabling the Inspecting Assistant Commissioner to impose the penalty in the present case. Admittedly, as a result of the omission of sub-section (2) of section 274 with effect from April 1, 1976, the provision enabling the Incometax Officer to make such a reference to the Inspecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on July 15, 1977. The above view taken by us is also in accord with the earlier view of this court dealing with a similar question as a result of similar amendments made with effect from April 1, 1971, in sections 271(1)(c) and 274(2) of the Act. As a result of these amendments made with effect from April 1, 1971, the question arose whether the reference made by the Income-tax Officer to the Inspecting Assistant Commissioner before April 1, 1971, was invalidated by the amendment or not. In CIT v. A. N. Tiwari [1980] 124 ITR 680 (MP), it was held that references validly made by the Income-tax Officer before April 1, 1971, according to the law as it then stood, were not invalidated by the amendments made with effect from April 1, 1971, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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