SADHU RAM vs. COMMISSIONER OF INCOME TAX
SUPREME COURT OF INDIA
S.C. Agrawal & G.B. Pattanaik, JJ. Civil Appeal No. 5978 of 1983* 12th March, 1997 (2001) 166 CTR (SC) 513
: (2001) 247 ITR 809 (SC) : (2002) 124 TAXMAN 484
SECTIONS 271(1)(c), 274(2)
Asst. year –
Decision in favour of Revenue
Counsel appeared
J.M. Khanna, for the Appellant : K.N. Shukla with K.N. Nagpal, C. Radha Krishna, Ms. A. Suhashini & B.
Krishna Prasad, for the Respondent
Order
BY THE COURT :
This matter relates to the jurisdiction of the IAC to impose the penalty. The High Court has found that the IAC has
jurisdiction to impose the penalty with reference to the date on which the order was passed by the ITO and not
with reference to the date on which penalty was imposed. This view of the High Court is in consonance with the
law laid down by this Court in CIT vs. Dhadi Sahu (1992) 108 CTR (SC) 444 : (1993) 199 ITR 610 (SC) :
TC49R.1103 wherein it has been held that once the IAC has validly exercised jurisdiction to pass the order
imposing a penalty, the Amending Act would not affect his jurisdiction. In view of the said decision, the appeal is
dismissed. No order as to costs.