Allahabad Court July 1978 Judgments

Commissioner of Income-tax Vs. Smt. Raj Rani Devi

Court: Allahabad

Reported in: [1979]116ITR358(All)

Satish Chandra, C.J.1. On 19th January, 1973, the ITO referred the case to the IAC of Income-tax for drawing up penalty proceedings. The concealed income was Rs. 10,000. With effect from 1st April, 1971, Section 274(2) of the I.T. Act, 1961 (hereinafter described as 'the Act'), had been amended. The jurisdiction of the IAC to initiate penalty proceedings was confined to cases where the amount of concealed income was in excess of Rs. 25,000. It is thus evident that if the amended provisions were applicable the IAC had no jurisdiction as the amount of concealed income was admittedly Rs. 10,000 which is much below the limit of Rs. 25,000. In CIT v. Om Sons : [1979]116ITR215(All) , a Bench of this court has held that jurisdiction must not only be possessed by the authority initially but it must continue to be clothed with that power throughout the period the matter is pending disposal before him. It was further held that as Section 274(2) has been amended with effect from April 1, 1971, th...