T.K.Basu, J. - (1.) The petitioner, Narendra Sharma, was assessed to income-tax for the assessment year 1961-62 by the Income-tax Officer, Central Circle XV, Calcutta. Although the order of assessment was passed on the 24th March, 1966, it was made under the provisions of Section 23(3) of the Indian Income-tax Act, 1922 (hereinafter referred to as "the repealed Act"). It is not disputed that all the notices issued to the petitioner by the appropriate Income-tax Officer in connection with the aforesaid assesement proceedings, were also issued under the provisions of the repealed Act.
(2.) On the 23rd March, 1966, the said Income-tax Officer issued two notices on the petitioner proposing to initiate proceedings for imposition of penalty under the provisions of Section 274 read with Section 271 of the Income-tax Act, 1961 (hereinafter referred to as "the Act").
(3.) The said two notices are set out hereinbelow : "Notice under Section 274 read with Section 271 of the Income-tax Act, 1961. CC.XV/34-S/61-62/726 Income-tax Officer, Central Circle XV, Calcutta. Dated 23rd March, 1966. To Shri Narendra Sharma, 1, Gibson Lane, Calcutta. Whereas in the course of proceedings before me for the assessment year 1961-62 it appears to me that you : 'have without reasonable cause failed to furnish the return of income which you were required to furnish by a notice given under Sections 22(2)/34 of the Indian Income-tax Act, 1922, or which you were required to furnish under Section 139(1), or by a notice given under Section 139(2)7148 of the Income-tax Act, 1961, No. III(I)/7/IV/F dated June 22, 1961, or have without reasonable cause failed to furnish it within the time allowed and in the manner required by the said Section 139(1) or by such notice.' You are hereby requested to appear before me at 11-30 A.m. on April 11, 1966, and shew cause why an order imposing a penalty on you should not to made under Section 271 of the Income-tax Act, 1961. 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. Sd : Illegible, Income-tax Officer. NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME-TAX ACT, 1961. No. CC. XV/34-S/61-62/730 Income-tax Officer, Central Circle XV, Calcutta. Dated 23rd March, 1966. To Shri Narendra Sharma, 1, Gibson Lane, Calcutta. Whereas in the course of proceedings before me for the assessment year 1961-62 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 Sub-section (2) of Section 274 of the Income-tax Act, 1961, you are hereby informed that the case for levy of a penalty under Clause (c) of Sub-section (I) of Section 271 is being referred by me to the Inspecting Assistant Commissioner of Income-tax, Range II (Central), 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. Sd:................... Income-tax Officer, Central Circle XV, Calcutta.";