| Case ID |
ec0fd1c5-eb56-44c5-b654-035fcf82a017 |
| Body |
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| Case Number |
IT REFERENCE No. 1 OF 1968 |
| Decision Date |
Mar 06, 1969 |
| Hearing Date |
|
| Decision |
The Assam High Court held that the income-tax authority was justified in starting penalty proceedings under section 271 of the Income-tax Act, 1961. The court ruled that when an assessment is completed after April 1, 1962, the provisions of the new Act apply. The tribunal's previous ruling that the penalty should fall under section 28(1)(c) of the old Act was overturned. The court emphasized that the legislative intent was clear in the transitional provisions, allowing the new law to govern penalties imposed after the new Act came into force, regardless of when the offence occurred. Thus, the penalty was validly imposed in this case, establishing a precedent for future cases involving similar circumstances. |
| Summary |
This case revolves around the interpretation of penalty provisions under the Income-tax Act, 1961, and its predecessor, the Indian Income-tax Act, 1922. The central issue was whether the Income-tax Officer could impose penalties for concealment of income under the new Act for assessments completed after its enactment. The court's decision clarified that penalties could be imposed under the new Act if the assessment was completed after its effective date, even if the income concealment occurred under the old Act. This ruling provides guidance for tax authorities and legal practitioners regarding the applicability of transitional provisions in tax law, ensuring clarity and consistency in the imposition of penalties. The case highlights the importance of understanding legislative intent and the operational timelines of tax laws, which can significantly affect outcomes for taxpayers and the revenue authorities. |
| Court |
Assam High Court
|
| Entities Involved |
Not available
|
| Judges |
S.K. DUTTA, C.J.,
K.C. SEN, J.
|
| Lawyers |
J.B. Bhattacharjee,
S.M. Lahiri,
S.K. Sen,
R.P. Agarwalla
|
| Petitioners |
Commissioner of Income tax
|
| Respondents |
Tezpur Automobiles
|
| Citations |
1970 SLD 308,
(1970) 75 ITR 722
|
| Other Citations |
C.A. Abraham v. ITO [1961] 41 ITR 425 (SC),
T.S. Baliah v. Rangachari [1969] 72 ITR 787 (SC),
CIT v. Hiralal Mohanlal Shah[1968] 69 ITR 312 (Guj.),
ITO v. Firm Madan Mohan Damma Mal [1968] 70 ITR 293 (All.),
Kalawati Devi Harlalka v. CIT [1967] 66 ITR 680 (SC),
Kishanlal v. CIT [1967] 64 ITR 285 (MP),
S.C. Magavi Haveri v. CIT [1967] 64 ITR 409 (Mys.),
Shakti Offset Works v. IAC [1967] 64 ITR 637 (Bom.),
Third ITO v. Damodar Bhat [1969] 71 ITR 806 (SC)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
271(1)(c),
297(2),
28(1)(c)
|