TMI Blog1995 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ting it was in order for the successor Income-tax Officer to have imposed the penalty without giving a fresh notice to the assessee or hearing the assessee - - - - - Dated:- 27-9-1995 - Judge(s) : B. P. JEEVAN REDDY. and S. B. MAJMUDAR. ORDER There are two appeals before us. In Civil Appeal No. 911 of 1977, two questions were referred under section 256(1) of the Income-tax Act, 1961, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961, the imposition of a penalty was justified as there was a delay for the purpose of section 271(1)(a) of the Income-tax Act, 1961 ?" Both the questions were answered by the High Court against the asses see and in favour of the Revenue. We see no error in the order of the High Court. So far as the first question is concerned, the only contention of the assessee was that before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment is passed against him, be reheard. But, in this case, it is not suggested that any such demand was made by the assessee. In such circumstances, the High Court was right in answering the question against the assessee. So far as the second question is concerned, the only submission is that since the assessee was entitled to and did file his return before making the assessment, no penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable by such firm should be determined after the tax paid by partners in respect of their share of profit from the firm from the gross tax payable by the firm, on the basis that it was unregistered firm ?" A reading of the question would disclose that the only contention of the assessee was that while calculating the tax with reference to which penalty was leviable under section 271(1)(a), re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done in this case. In such a situation, there is no occasion of deducting the tax paid by the partners, in their individual assessments from out of the tax assessed. It may be remembered that the assessment of tax is only for the purpose of determining the penalty payable, inasmuch as at the relevant time the penalty was two percent. of the assessed tax subject of course to the prescribed ceiling. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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