( 1 ) INCOME-TAX Appellate Tribunal, Allahabad Bench a, has referred the following question of law for opinion of this court :

"whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in confirming the levy of penalty under Section 271 (1) (c) of the Act?"

( 2 ) ON the submission advanced by learned counsel for the assessee, which we are inclined to accept, we do not consider it necessary to set out facts in detail. Penalty was levied on the assessee by IAC on March 30, 1977, under Section 274 of the IT. Act. Sub-section (2) of this section required an ITO to refer the case to the IAC if the penalty imposable exceeded Rs. 25,000. The ITO, after computing a total income of Rs. 98,880 against the returned income of rs. 52,148, initiated proceedings under Section 271 (1) (c) of the Act on February 28, 1975, and referred the matter to the IAC because the minimum penalty imposable exceeded Rs. 25,000. By the time, however, the order was passed on March 30, 1977, the sub-section was amended by the t. L. (Amend.) Act, 1975, with effect from April 1, 1976, the effect of which was that jurisdiction to levy penalty vested in the ITO irre