1. In this reference under Sec.256(1) of the Income-tax Act, 1961 (hereinafter called "the Act"), the following question of law has been referred to for our opinion :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the Inspecting Assistant Commissioner had no jurisdiction to levy penalties in those cases in view of the amended provisions of Sections 274 and 275 of the Income-tax Act, 1961, which came into force with effect from April 1, 1971 ?"

2. The assessee was assessed in the capacity of an individual. The assessment years in this consolidated reference are 1967-68 and 1968-69. The assessee is a contractor executing contracts in the Division of Koshi Project. The original assessments for the above two years were completed on May 30, 1970, on incomes of Rs. 4,890 and Rs. 6,940 for the two assessment years respectively. Later, the Income-tax Officer came to learn that the assessee had not disclosed certain payments received by him during the relevant years. A proceeding under Section 147 of the Act was, therefore, initiated. In the course of the said proceeding, the Income-tax Officer initiated proceedings for impositi