Uday Sinha, J.

1. These are six references under Sec.256(1) of the Income-tax Act, 1961 (hereinafter called "the Act"), and relate to the assessment years 1968-69 to 1973-74, The core question agitated in these references is whether the jurisdiction of the Commissioner of Income-tax to act under Sec.263(1) of the Act was ousted by a scheme envisaged by the Central Board of Direct Taxes (hereinafter called "the Board"). A subsidiary question is whether the Tribunal had rightly held that the Commissioner of Income-tax had not followed the rules of natural justice and whether on that score his order was invalid.

2. In 1972, the Board envisaged a scheme to help new taxpayers in the small income group. This was a follow-up of a programme of mass communication. In terms of this scheme, no penalty under Sec.271 or Sec.273 was to be levied in the case of a person, who had not been assessed, if the return of income was filed voluntarily prior to January 1, 1973, and the income as declared or as assessed did not exceed Rs. 15,000. An order under Sec.119(2)(a) of the Act had been issued by the Board authorising the Income-tax Officer not to initiate penalty proceedings under Sec.271 o