Gokal Chand Mital, J.

1. During the course of assessment for the year 1970-71, the Income-tax Officer added the cost of toria pledged by the assessee with the Shahukara Bank of the value of Rs. 15,360 as income of the assessee from undisclosed sources and proceedings for levy of penalty were initiated under Section 271(1)(c) of the Income-tax Act, 1961 (for short "the Act"). The assessee remained unsuccessful in the quantum appeal.

2. In penalty proceedings, the Income-tax Officer levied penalty and his order was confirmed in appeal by the Appellate Assistant Commissioner. On further appeal to the Income-tax Appellate Tribunal, Amritsar, the penalty was cancelled on the point that the Income-tax Officer had no jurisdiction to levy the penalty as it exceeded Rs. 1,000, according to the law prevailing at that time. Section 274(2) of the Act was amended with effect from April 1, 1976, and the jurisdiction of the Income-tax Officer to levy penalty was enhanced from Rs. 1,000 to Rs. 25,000. The stand of the assessee was that the date of filing of the return, i.e., September 30, 1970, was crucial for finding out the law applicable and at that time, according to the unamended prov