Judgment

S.P.BHARUCHA, J.

(1) THIS is an appeal on a certificate granted by the High court of Kerala. The judgment under appeal was delivered on a reference under Section 256(2 of the Income Tax Act, 1961. It answered in the negative, that is, against the appellant (assessee) and in favour of the Revenue (respondent), the following question:

"WHETHER on the facts and in the circumstances of the case, the Income Tax Appellate tribunal is right in law in holding that the Income Tax Officer had no jurisdiction to levy the penalty and that he should have referred the case to the Inspecting Assistant Commissioner for imposition of penalty?"

(2) THE reference pertained to the Assessment Year 1968-69, the relevant accounting period having ended on 31/03/1968.

(3) THE assessee filed his return on 16/04/1970. With effect from April I, 1971, Ss. (2 of Section 274 of the Income Tax Act, 1961, was amended. Prior to the said amendment where, in a case falling under clause (iii) of Ss. (1 of Section 271, the minimum penalty imposable exceeded the sum of Rs. 1,000.00, the Income Tax Officer was obliged to refer the case to the Inspecting Assistant Commissio