COMMISSIONER OF INCOME-TAX,ANDHRA PRADESH vs MIS. BHIKAJI DADABHAI & CO.

The Supreme Court held that the Income-tax Officer retained the power to impose a penalty under Section 40(1) of the Hyderabad Income-tax Act, despite its repeal by the Finance Act, 1950, as the Act's provisions for levy and assessment for periods prior to repeal were saved. The Court ruled that the Appellate Assistant Commissioner had jurisdiction to hear appeals against the Income-tax Officer's orders, affirming that his authority was not contingent on the Officer's competence to issue the order. Consequently, the appeal was allowed, and the penalty was upheld.