COMMISSIONER OF INCOME TAX Vs. R R PICTURES

JUDGEMENT

(1.) IN pursuance of the directions of this court, the INcome-tax Appellate Tribunal has stated a case and referred the following questions of law for our consideration in relation to the assessment year 1966-67 of the assessee :

(2.) THE assessee filed the return of income on February 18, 1970, showing the income of Rs. 64,310. Later on, it filed a revised return of income on December 26, 1990 (sic), showing the income as Rs. 1,00,595. THE assessment was made by the Income-tax Officer making certain additions. Later on, the Income-tax Officer instituted penalty proceedings and imposed a penalty of Rs. 60,000 by his order dated March 27, 1980. On appeal, the Commissioner (Appeals) held that the Income-tax Officer has no jurisdiction to levy the penalty as according to him the order of penalty ought to have been passed by the Inspecting Assistant Commissioner and the Income-tax Officer lacked the necessary jurisdiction to pass the order of penalty. THE Commissioner (Appeals) also made an observation to the effect that since the amounts had been voluntarily returned, it was not right to contend that there was concealment and the amount of penalty shall be confined to the sum of Rs. 37,533, which represented the actual concealed income. THE Commissioner (Appeals) has allowed the appeal preferred by the assessee and cancelled the penalty levied by the Income-tax Officer on the ground of lack of jurisdiction of the Income-tax Officer to levy the penalty.