TMI Blog1971 (5) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before the Tribunal. - - - - - Dated:- 7-5-1971 - Judge(s) : S. N. DWIVEDI., GOPINATH. JUDGMENT The judgment of the court was delivered by DWIVEDI J.-These are six references under section 256(1) of the Income-tax Act, 1961 (hereinafter called "the 1961 Act "), at the instance of the Commissioner of Income-tax. The Tribunal has referred a common question of law: "Whether, on the facts and in the circumstances of the case, it could be rightly held that no penalty can be levied on the assessee under section 273(b) of the Act of 1961 for the assessment year under appeal for a default under section 18A(3) of the Act of 1922 ? " The overall pattern of facts and circumstances in all these cases in this : The assessees were as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s saving clauses. Sub-section (2)(g) of section 297 provides that, notwithstanding the repeal of the 1922 Act, " any proceeding for the imposition of a penalty in respect of any assessment for the year ending on the 31st day of March, 1962, or any earlier year, which is completed on or after the 1st day of April, 1962, may be initiated and any such penalty may be imposed under this Act ". Counsel for the assessees, Sri Upadhya, has admitted before us that the assessment for the various years was completed on or after April 1, 1962. However, he has urged that a proceeding for the imposition of a penalty under section 18A(9) of the 1922 Act is not a proceeding for assessment and that, accordingly, sub-section (2)(g) of section 297 will not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed upon the assessees in the instant references under section 18A(9) of the 1922 Act. Section 18A(9) provides that if the Income-tax Officer, " in the course of any proceedings in connection with the regular assessment ", is satisfied that any assessee has without reasonable cause failed to comply with the provisions of sub-section (3), be may impose penalty on the assessee. That provision is similar to section 273(b) of the 1961 Act. The question before us really is not whether an order imposing a penalty under section 18A(9) is an order of assessment under section 34(3) of the 1922 Act but whether a proceeding for the imposition of penalty under section 18A(9) is " in respect of any assessment " for the year ending on March 31, 1962, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neering Works P. Ltd. The Supreme Court has held that imposition of penalty under section 18A(9) may be made under section 273(b) by virtue of section 297(2)(g). We have, however, dealt with the argument of counsel for the assessees because he submitted that the aspect which he has presented to us has not been considered by the Supreme Court. The decision of the Supreme Court does not expressly deal with the aspect presented to us. But nevertheless the decision of the Supreme Court is binding on us. However, we have considered the aspect presented to us and have already come to the conclusion that there is no force in the argument. Having regard to the foregoing discussion our answer to the question referred to us is that penalty under se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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