BHIKARI CHARAN PANDA Vs. INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application for a writ of certiorari to quash an imposition of penalty under Section 274(2) read with Section 271 of the Income-tax Act of 1961 (hereinafter referred to as "the Act") by the Inspecting Assistant Commissioner of Income-tax (Opposite Party No. 1).

(2.) ASSESSEE is an advocate at Cuttack. For the assessment year 1970-71, he made a return of income of Rs. 3,933. The Income-tax Officer (Opposite Party No. 2) by the order of assessment dated December 31, 1970, determined the income at Rs. 16,500. Upon appeal, the Appellate Assistant Commissioner reduced the income to Rs. 14,300. There is no dispute that the income of the petitioner for the year has been finally determined at that amount. The Income-tax Officer initiated proceedings under Section 271(1)(c) of the Act and referred the matter to the Inspecting Assistant Commissioner as in his view the minimum penalty imposable in the case was in excess of Rs. 1,000. The Inspecting Assistant Commissioner called upon the petitioner to show cause on October 6, 1972, as to why penalty under Section 271(1)(c) of the Act shall not be imposed and, after hearing petitioner's counsel, imposed a penalty of Rs. 12,000 by his order dated 20th of February, 1973.