N.D. Ojha, Actg. C.J.

1. THE following question has been referred to this court for its opinion by the Income-tax Appellate Tribunal, Allahabad :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that Section 274(2) is procedural and not substantive thereby confirming the penalties imposed by the Income-tax Officer for the assessment years 1966 67 to 1969-70 ?"

2. THE facts in a nutshell for deciding the aforesaid question are that the assessee submitted his returns in respect of the relevant assessment years before April 1, 1971. THE assessments were completed on the basis of those returns. However, subsequently, the assessments were reopened and the asses-see filed revised returns in 1972. Revised assessments orders were passed in the same year 1972. Subsequently, penalty proceedings were initiated. Orders imposing penalty were passed by the Income-tax Officer in the years 1974 and 1975. Section 274(2) of the Income-tax Act, 1961, had been amended with effect from April 1, 1971, by the Taxation Laws (Amendment) Act of 1970. THE effect of this amendment was that the jurisdiction of the Inspecting Assistant Commissioner to impo