INDRASEN BHOOT Vs. COMMISSIONER OF WEALTH TAX M P

JUDGEMENT

(1.) BY this reference under Section 27(1) of the W.T. Act, 1957, hereinafter called the Act, the Income-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court for its opinion :

(2.) THE material facts giving rise to this reference, as set out in the statement of case, briefly are as follows : THE assessee had filed returns for the assessment years 1970-71 and 1971-72. At the time of making the assessment, the WTO found that the assessee had concealed certain income and had also failed to furnish particulars of his income as required by law. Penalty proceedings were, therefore, initiated against the assessee and forwarded to the IAC as the amount of penalty exceeded a sum of Rs. 25,000 in each case. THE IAC, after considering the material on record, imposed penalties amounting to Rs. 1,00,000 and Rs. 60,000, respectively, for the two years in question. Against that order, the assessee preferred an appeal before the Tribunal. It was contended on behalf of the assessee that the IAC had no jurisdiction to levy the penalties in question by his order dated 23rd March, 1977, because, after the amendment of the Act with effect from 1st April, 1976, the jurisdiction to impose penalty vested in the WTO and not in the IAC. It was urged that the impugned orders, which were passed by the IAC on 23rd March, 1977, were, therefore, without jurisdiction. This contention was not upheld by the Tribunal. THE Tribunal, however, reduced the amount of penalty to a sum of Rs. 50,000 only. At the instance of the assessee and the Department, the Tribunal has referred the aforesaid questions of law to this court for its opinion.