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TMI Blog1971 (5) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 assessed to tax for various years before the assessment year 1960-61. During assessment proceedings it appeared that they were liable to pay advance tax under section 18A(3) of the Indian Income-tax Act, 1922 (hereinafter called " the 1922 Act "). But they had not paid the advance tax. So proceedings were initiated against them under section 273(b) of the 1961 Act. The assessees contended that no penalty could be imposed on them under section 273(b). The Income-tax Officer rejected the contention and levied a penalty on them. Figures of penalty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 apply. In support of his argument he has sought to rely on H. G. Misra and Co. v. Appellate Assistant Commissioner of Income-tax. In that case a Division Bench of this court has held that levy of advance tax under section 18A is not a matter relating to the assessment of income-tax. Accordingly, it was said that proceedings for levy of penalty for non-payment of advance tax are not included in the proceedings for assessment of income-tax and that none of the sub-clauses (a) to (m) of section 297(2) will apply to save the liability to penalty for n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment 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, or any earlier year. The expression " in respect of any assessment for the year " is used in section 297(2)(g) of the 1961 Act. It may be that advance payment of tax under section 18A(3) is not a proceeding for assessment. But that is not the question before us. Section 18A(9) clearly states that where the Income-tax Officer, in the course of any proceedings in connection with the regular assessment, is satisfied that there has been a breach of section 18A(3) by the assessee, he may impose a penalty. So the imposition of penalty under section 18A(9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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