Bharucha, J. - (1.) This is an appeal on a certificate granted by the High Court of Kerala. The judgment under appeal was delivered on a reference under S.256(2) of the Income-tax Act, 1961. It answered in the negative, that is, against the appellant (assessee) and in favour of the Revenue (respondent, the following question :"Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the Income-tax Officer had no jurisdiction to levy the penalty and that he should have referred the case to that Inspecting Assistant Commissioner for imposition of penalty -
(2.) The reference pertained to the Assessment Year 1968-69, the relevant accounting period having ended on 31st March, 1968.
(3.) The assessee filed his return on 16th April, 1970. With effect from 1st April, 1971, sub-sec. (2) of S. 274 of the Income-tax Act, 1961, was amended. Prior to the said amendment where, in a case falling under Cl. (iii) of sub-sec. (1) of S. 276, the minimum penalty imposible exceeded the sum of Rupees 1,000/-, the Income-tax Officer was obliged to refer the case to the Inspecting Assistant Commissioner. The reason of the said amendment the Income-tax Officer was obliged to refer to the Inspecting Assistant Commissioner such cases falling under Cl. (c) of sub-sec. (1) of S. 271 where the amount of income, as determined by the I.T.O. on assessment, in respect of which particulars had been concealed or inaccurate particulars had been furnished exceeds the sum of Rs. 25,000/-. On 27th March, 1972, the I.T.O. made the orders of assessment and initiated penalty proceedings against the assessee on the basis of a finding recorded in the assessment order that there had been concealment of income in respect of an amount which did exceed Rs. 25,000/-. After considering the assessees objections, the I.T.O., by order dated 26th March, 1974, imposed a penalty of Rs. 10,000/-.;