TMI Blog1970 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the court was delivered by GROVER J.- The respondent-company which is an assessee was required by the Income-tax Officer by notices issued under section 18A(1) of the Indian Income-tax Act, 1922, hereinafter called the " old Act ", to make an advance payment of tax amounting to Rs. 3,17,077 for the assessment year 1960-61, and Rs. 3,54,911 for the assessment year 1961-62. The assessee chose to file its own estimate of tax under section 18A(2) and in accordance therewith it paid two instalments of advance tax of Rs. 38,333 each for the assessment year 1960-61 and three instalments of Rs. 12,875 each for the assessment year 1961-62. Thereafter, the assessee filed revised estimates of tax in the month of March, 1960, and March, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Act did not save the proceedings under section 18A of the old Act. A question of law was referred directly to this court under the provisions of section 257 of the new Act owing to the conflict between the decisions of the various High Courts. Section 18A of the old Act makes provision for advance payment of tax. Sub-section (9) provides, inter alia, for the imposition of penalty if the Income-tax Officer is satisfied that the assessee has furnished estimates of the tax payable by him which he knew or had reason to believe to be untrue. In the new Act section 212 makes provision for the estimate by the assessee and payment of tax in accordance with that estimate. Section 273 of the new Act empowers the Income-tax Officer to levy penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d so read the only conclusion possible is that for the imposition of a penalty in respect of any assessment for the year ending on March 31, 1962, or any earlier year which is completed after first day of April, 1962, the proceedings have to be initiated and the penalty imposed in accordance with the provisions of section 271 of the Act of 1961. Thus, the assessee would be liable to a penalty as provided by section 271(1) for the default mentioned in section 28(1) of the Act of 1922, if his case falls within the terms of section 297(2)(g). We may usefully refer to this court's decision in Third Income-tax Officer, Mangalore v. Damodar Bhat, with reference to section 297(2)(j) of the Act of 1961. According to it in a case falling within that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
