TMI Blog1972 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ion came up for hearing before a Division Bench, the petitioner argued that as section 221 does not give power to impose penalty to the Income-tax Officer, specifically, the order imposing penalty is without power and invalid. He relied on Smt. Kusum Kumari v. Union of India. It is a Division Bench decision of the court. The decision squarely supports the petitioner's argument. But the Bench hearing this petition had doubts about the correctness of Smt. Kusum Kumari. So the case has been referred to a larger Bench. Hence, this petition is before us now. Section 221 materially reads : " (1) When an assessee is in default or is deemed to be in default in making a payment of tax, he shall, in addition to the amount of the arrears and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that if the principal officer of the company of which he is the principal officer does not deduct or after deducting fails to pay the tax as required by or under the Act, he or it shall be deemed to be an assessee in default in respect of the tax. The proviso to sub-section (1) of section 201 reads : " Provided that no penalty shall be charged under section 221 from such person, principal officer or company unless the Income-tax officer is satisfied that such person or principal officer or company, as the case may be, has without good and sufficient reasons failed to deduct and pay the tax. " The proviso also clearly shows that an Income-tax Officer may impose penalty under section 221. Section 246(1) and (o) are there in the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the certificate issued by the Income-tax Officer. Section 229 provides that penalty shall also be recovered in the manner provided for the recovery of tax. Section 230 empowers the Income-tax Officer to take action in a certain contingency. Section 230A also empowers the Income-tax Officer to take certain action in a certain other contingency. Section 232 authorises the Income-tax Officer to institute a suit for recovery of tax. It is only section 221 which does not expressly authorise the Income-tax Officer to impose penalty. But its immediate context would suggest that Parliament intended to authorise the Income-tax Officer to impose penalty. Counsel for the petitioner wants us to apply the rule of strict interpretation to the constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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