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Bhagwan Dass Vijay Kumar Mandi Dabwali Vs. Commissioner of Income-tax - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtPunjab and Haryana High Court
Decided On
Case NumberIncome-tax Reference No. 103 of 1975
Judge
Reported in[1983]139ITR164(P& H)
ActsIncome Tax Act, 1961 - Sections 271(1)
AppellantBhagwan Dass Vijay Kumar Mandi Dabwali
RespondentCommissioner of Income-tax
Appellant Advocate R.C. Dogra, Adv.
Respondent Advocate D.N. Awasthy and; B.K. Jhingan, Advs.
Excerpt:
- sections 80 (2) & 89 & punjab motor vehicles rules, 1989, rules 85 & 80: [t.s. thakur, cj, jasbir singh & surya kant, jj] appeal against orders of state or regional transport authority imitation held, a stipulation regarding the period of limitation available for invoking the remedy shall have to be strictly construed. that is because any provision by way of limitation is in the nature of a restraint on the remedy provided under the act. so viewed two inferences are clear viz., (1) sections 80 and 89 of the act read with rule 85 of the rules make it obligatory for the authorities making the order to communicate it to the applicant concerned and (2) the period of limitation for any appeal against the order is reckonable from the date of such communication of the reasons would imply..........came to be made on march 17, 1969, whereby the total income was determined at rs. 92,462. penalty proceedings under section 271(1)(c) of the i.t. act (hereinafter referred to as ' the act ') were initiated at the time of completing the assessment.2. the assessee filed an appeal against the assessment order which was accepted and the aac directed the ito to reframe the assessment afresh in accordance with law. consequently, the penalty proceedings under section 271(1)(c) of the act, which were initiated on the basis of his first order were dropped by the iac.3. the revised assessment was made and the total income was determined at rs. 36,360. the assessee's appeal was accepted and the amount of undisclosed income was reduced by rs. 7,320. the revenue filed an appeal before the.....
Judgment:

B.S. Dhillon, J.

1. The assessee is an HUF. The assessment year is 1964-65. The assessee filed the return of income on July 29, 1966, declaring income of Rs. 1,971. The assessment originally came to be made on March 17, 1969, whereby the total income was determined at Rs. 92,462. Penalty proceedings under Section 271(1)(c) of the I.T. Act (hereinafter referred to as ' the Act ') were initiated at the time of completing the assessment.

2. The assessee filed an appeal against the assessment order which was accepted and the AAC directed the ITO to reframe the assessment afresh in accordance with law. Consequently, the penalty proceedings under Section 271(1)(c) of the Act, which were initiated on the basis of his first order were dropped by the IAC.

3. The revised assessment was made and the total income was determined at Rs. 36,360. The assessee's appeal was accepted and the amount of undisclosed income was reduced by Rs. 7,320. The Revenue filed an appeal before the I.T. Appellate Tribunal, Chandigarh Bench (hereinafter referred to as ' the Tribunal '), on which the Tribunal restored the addition of Rs. 24,000 in respect of certain credits, which amount was held to have been explained by the AAC.

4. Penalty proceedings were initiated at the time of completing the reassessment/fresh assessment proceedings and as the minimum penalty imposable exceeded Rs. 1,000, the matter was referred to the I AC. The I AC held that the Expln. to Section 271(1)(c) of the Act was applicable. He, therefore, levied a penalty of Rs. 5,000. The Tribunal, in appeal, held that the penalty under Section 271(1)(c) was exigible. The quantum of penalty was, however, reduced to Rs. 3,000.

5. At the instance of the assessee, the following question of law has been referred to this court for its opinion:

' Whether, on the facts and in the circumstances of the case, particularly in view of the Inspecting Assistant Commissioner's order dated January 13, 1971, dropping penalty proceedings, the Tribunal was right in law in holding that penalty under Section 271(1)(c) could be levied in reassessment proceedings '

6. After hearing the learned counsel for the parties and taking into consideration the provisions of Section 271 of the Act, we are of the opinion that no fault can be found with the view taken by the Tribunal. The penalty proceedings were initiated on the basis of the first assessment order. The said assessment order was set aside by the AAC and a fresh assessment was ordered. The penalty proceedings were dropped in view of the order of the AAC. On fresh assessment order having been passed and, ultimately, the Tribunal having come to the conclusion that there was concealment of income, the initiation of the penalty proceedings on the basis of the fresh assessment order cannot be held to be without jurisdiction. The provisions of Section 271(1) are wide enough to include any type of proceedings under the Act which may include the proceedings on the basis of a remand order.

7. For the reasons recorded above, the question of law referred to this court for its opinion is answered in the affirmative, i.e., against the assessee and in favour of the Revenue. The costs will follow the event.

Gokal Chand Mittal, J.

8. I agree.


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