1962 (8) TMI 66 - SC - Income Tax

Whether, on a true construction of sub-section (6), (8), and (9) of section 18A of the Indian Income-tax Act, the interest referred to in sub-section (8) is chargeable for failure on the part of an assessee to submit an estimate of his income and pay tax as required by the terms of sub-section (3) of that section?

Held that:- Appeal dismissed. Sub-section (9) of section 18A provides for payment of penalty in terms of section 28 upon submission of estimates under sub-section (2) and (3) known or reasonably believed to be untrue or upon failure without reasonable cause to comply with the provisions of sub-section (3). We are unable to see that this provision in any way affects the construction of sub-section (6) or (8) or assists in the solution of the difficulty which has arisen in this case. The penalty under sub-section (9) is in addition to the liability under sub-section (6) and (8) which is not penalty in the real sense, and is leviable for reasons different from those on which the levy of interest under sub-sections (6) and (8) is based. The result, therefore, is that these appeals are dismissed and the decision of the High Court answering the question framed is upheld.