1976 (12) TMI 49

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..... red by DESAI J.-- The following question has been referred to us for our consideration by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 : " Whether, on the facts and in the circumstances of the case and on a proper interpretation of section 297(2)(g) of the Income-tax Act, 1961, penalty could be imposed under section 271(1)(c) of the said Act in respect of as .....

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..... ings were subsequently taken up by the Inspecting Assistant Commissioner, who by his orders dated 19th January, 1965, imposed penalties of Rs. 1,401 Rs. 2,689, Rs. 8,007 and Rs. 9,191, respectively, for each of the four assessment years in question. The assessee, thereafter, appealed to the Tribunal. The Tribunal was of the view that there was no proceeding under the 1961 Act and the condition pr .....

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..... w that it took, viz., that the Inspecting Assistant Commissioner had no jurisdiction and his orders, therefore, were void ab initio. Before us Mr. Joshi on behalf of the Commissioner relied on the provisions contained in section 297(2)(g) of the Act of 1961. On behalf of the assessee the learned counsel submitted but not very strenuously that the said provision was not applicable but that the cas .....

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..... ng regard to the provision contained in the definition section, viz., section 2(8) of the Act of 1961, which defines " assessment " as inclusive of reassessment, we are of opinion that the proceedings would be governed by the later section, i.e., section 297(2)(g), and not by section 297(2)(f) as contended by the learned advocate for the assessee. It is also important to bear in mind that the prov .....

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..... in the definition section, viz., section 2(8), and must include reassessment. We were also referred by learned counsel for the Commissioner to the decision of the Supreme Court in Jain Bros. v. Union of India [1970] 77 ITR 107 (SC) in which the impact of this provision of section 297(2)(g) has been considered. In the light of this statutory provision as interpreted by the Supreme Court, we are of .....

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