Rama Jois, J.—The Income Tax Appellate Tribunal, Bangalore Bench, has referred the following question of law for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the Income Tax Officer had no jurisdiction to levy penalty u/s. 271(1)(c) for the assessment year 1968-69 notwithstanding the amendment of section 274(2) by the Taxation Laws (Amendment) Act, 1970, with effect form April 1, 1971 ?"

2. The assessee is the same in both the references. The assessment years are 1968-69 and 1969-70. The Income Tax returns were filed by the assessee on July 27, 1968, and July 24, 1969, respectively. The assessments were finalised on the said basis. Subsequently, the assessments were reopened. Notices under s. 148 of the I.T. Act, 1961 (hereinafter referred to as "the Act"), were issued to the assessee on January 6, 1970. The revised returns were filed by the assessee on March 4, 1970.

3. At this stage, it is necessary to refer to the relevant provisions of the Act. Under sub-s. (2) of s. 274 of the Act as it stood on the above dates, the ITO had to refer all cases of penalties in which the minimum