C.S.P. Singh, J.

1. At the instance of the Commissioner of Income-tax, the Tribunal has referred the following question for our opinion:

"Whether, on the facts and in the circumstances of the case, was the Tribunal right in holding that, the Inspecting Assistant Commissioner of Income-tax had no jurisdiction to pass order of penalty in respect of the assessment year 1969-70?"

2. The assessee carries on retail business at Delhi in woollen goods. For the assessment year 1969-70, it filed a return showing a loss of Rs. 28,170. The assessment was, however, computed on a total income of Rs. 27,860. On appeal, the total income computed by the ITO was sustained and a loss of Rs. 14,313 was determined by the AAC. While computing the assessment, the ITO initiated proceedings under Section 271(1)(c) of the I.T. Act, and referred the matter to the IAC under Section 274 of the Act. The IAC held that the provisions of Section 271(1)(c) were attracted, and imposed a penalty of Rs. 15,000 by his order dated November 29, 1971. An appeal was preferred by the assessee before the Tribunal. The Tribunal held that as Section 274(2) of the I.T. Act had been amended, with effect from April 1, 1971