9911796707
TMI Blog1969 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... , which was served on 26th May, 1961. The return was due on 1st July, 1961, but was filed on 5th November, 1962. For this default, the Income-tax Officer, C-Ward, Udaipur, imposed a penalty of Rs. 4,380 under section 271(1)(i) of the Income-tax Act, 1961, at the rate of 2% of the tax for each month of default. The appeal to the Appellate Assistant Commissioner, Jodhpur, by the assessee was dismissed. On second appeal by the assessee, the Tribunal took the view that the measure of penalty for a default must be in accordance with law which was in force at the time when the default was made. The Tribunal held that the default of delay in filing the return was committed when the old Act was in force and as there was no limit with regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty than what has been imposed by the Income-tax Officer. The relevant part of section 271 runs as follows : "271. Failure to furnish returns, comply with notices, concealment of income, etc.-(1) If the Income-tax Officer or the Appellate Assistant Commissioner, in the course of any proceedings under this Act, is satisfied that any person- (a) has without reasonable cause failed to furnish the return of his total income which he was required to furnish under sub-section (1) of section 139 or by notice given under sub-section (2) of section 139 or section 148 or has without reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section (1) of section 139 or by such notice, as the case may be, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same amount as would be imposable on that firm if that firm were an unregistered firm." Section 271(1)(i) speaks in unequivocal terms that in the cases referred to in clause (a) a sum equal to 2% of the tax for every month during which the default continues, but not exceeding in the aggregate 50% of the tax was to be the amount of penalty. This means that the penalty to be imposed is to be calculated at 2% of the tax for every month during which the default continues, but the maximum limit was 50% of the tax. The view taken by the Tribunal is that clause (i) does not lay down any minimum limit as has been provided in section 271(1)(iii), just as in section 271(1)(iii) both the minimum and maximum limits have been prescribed, and, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961, makes it clear that any sum, other than penalty or interest, paid by or recovered from the assessee as advance tax in pursuance of Chapter XVII shall be treated as payment of tax in respect of the income of the period which would be the previous year for an assessment for the assessment year next following the financial year in which it was payable and credit, therefore, shall be given to the assessee in the regular assessment. The two sections read together make it perfectly clear that tax payable by an assessee as referred to in section 271(1)(a) is the tax payable after giving credit for the advance tax paid by him as contemplated under section 219. 3. It has, therefore, been decided that the net amount of tax payable by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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