1. These two references under Sec.256(1) of Income-tax Act, 1961, relate to the assessment years 1965-66 and 1966-67. The question referred to us for our opinion is :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the amended provisions of Sec.275 were not applicable to penalty proceedings under Sec.271(1)(a) which were pending on April 1, 1971 and the proceeding is time-barred ?"

2. The assessee was required to submit returns for the two assessment years in question. The returns had to be filed by September 30, 1965, and September 30, 1966, for the two assessment years. They were, in fact, filed on February 28, 1968. In the course of the assessment proceeding, the Income-tax Officer initiated proceedings for imposition of penalty in terms of Sec.271(1)(a) of the Income-tax Act. It would be relevant to state here that the assessments for the two assessment years were completed on November 3, 1969. The penalty, in terms of Sec.271(1)(a) of the Income-tax Act, was imposed by order dated March 28, 1972. The Income-tax Officer imposed a penalty of Rs. 8,336 for the assessment year 1965-66 and Rs. 11,883 for 1966-67,