Sabyasachi Mukharji, J. - (1.) The subject-matter of challenge in this application under Article 226 of the Constitution is the notice dated the 10th February, 1971, issued under Section 274(2) read with Section 271 of the Income-tax Act, 1961, for the assessment year 1964-65 by the Inspecting Assistant Commissioner of Income-tax (Central), Range-I, Calcutta. In the impugned notice the Inspecting Assistant Commissioner of Income-tax (Central), Range-I, has stated as follows: "Whereas the Income-tax Officer, Central Circle-V, Calcutta, has under Sub-section (2) of Section 274 of the Income-tax Act, 1961, referred your case to me in connection with the penalty proceedings under Clause (c) of Sub-section (1) of Section 271 and whereas it appears to me that you have concealed the particulars of your income or deliberately furnished inaccurate particulars of such income for the assessment year 1964-65. You are hereby requested to appear before me at 11.30 A.M. on February 24, 1971, and show cause why an order imposing a penalty on you should not be made under Section 271(1)(c) of the said Act. If you do not wish to avail yourself of this opportunity of being heard in person or through authorised representative you may show cause in writing on or before the said date which will be considered before any such order is made under Section 271(1)(c)....."
(2.) It was contended that the Inspecting Assistant Commissioner of Income-tax (Central), Range-I, Calcutta, had no jurisdiction and no authority to issue the impugned notice. It appears that the assessment for the assessment year 1964-65 was completed by the Income-tax Officer, "A" Ward, Jullundur. The said assessment was completed on the 18th March, 1969. Therein it was observed as follows : ".....Penalty notice under Section 274 read with Section 271(1)(c) of concealing true particulars of income has already been issued. Penalty notice under Section 274 read with Section 271(1)(b) for non-compliance of notice under Section 142(1) or 143(2) has also been issued....."
(3.) Thereafter, it appears the case of the petitioner was transferred to the Income-tax Officer, Central Circle-V. The said officer on the 5th June, 1970, issued the notice which is as follows: "Whereas in the course of proceedings before me for the assessment year 1964-65 it appears to me that you have concealed the particulars of your income or deliberately furnished inaccurate particulars of such income and whereas the penalty proceedings have to be referred to the Inspecting Assistant Commissioner of Income-tax. According to Subsection (2) of Section 274 of the Income-tax Act, 1961, you are hereby informed that the case for levy of a penalty under Section (under Clause (c) of Subsection (1) of Section 271) is being referred by me to the Inspecting Assistant Commissioner of Income-tax, Range-I(c), Calcutta. Further proceedings in regard to the levy of a penalty will take place before the said Inspecting Assistant Commissioner of Income-tax as provided in Sub-section (2) of Section 274.";