9911796707
TMI Blog1962 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... his application are as follows: The assessee is a partner in several firms carrying on business. These firms were registered under the Indian Income-tax Act. They were (1) K.N.P. Arunachala Mudaliar and Co., Tiruchi, (2) P. Ramaswami, Woraiyur, (3) Arunachala Knitting Factory, Karur, (4) P. Perianna Mudaliar Weaving Factory, Srirangam. The assessee was served with a demand notice from the department for payment of advance tax of ₹ 7,947-8-0 under section 18(A)(1) for the assessment year 1952-53. The amount demanded was calculated on the basis of the assessment for the previous completed year 1951-52. The date of the notice was 20th August, 1952. The assessee estimated his total income for the assessment year 1953-54 at ₹ 27,500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee set out the following tabular statement: 1952-53 1953-54 Rs. Rs. Arunachala Knitting Factory 9,806 2,508 P. Perianna Mudaliar Weaving Factory 3,730 1,299 P. Ramaswami, Woraiyur 13,742 8,661 K.N.P. Arunachala Mudaliar & Co. 15,677 20,597 The Income-tax Officer, Tiruchirapalli, took the view that it was upon the assessee to prove that the estimate filed by him was actually based on his accounts, that it was not difficult for the assessee to submit a revised statement of estimate in March, 1953, after the income shot up and that the assessee failed to show sufficient cause to avoid penalty. Accordingly, a penalty of ₹ 1,000 was levied by him. On appeal the Appellate Assistant Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of tax only on the basis of the original estimate, a case has been established by taking action under section 28(1)(c) read with section 18A(9)(a)." The relevant provisions of section 18A may now be noted. "18A. (1)(a) In the case of income in respect of which provision is not made under section 18 for deduction of income-tax at the time of payment, the Income-tax Officer may, on or after the 1st day of April in any financial year, by order in writing, require an assessee to pay quarterly to the credit of the Central Government on the 15th day of June, 15th day of September, 15th day of December and 15th day of March in that year, respectively, an amount equal to one quarter of the income-tax and super-tax payable on so mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8, so far as may be, shall apply accordingly. 28. (1) If the Income-tax Officer....in the course of any proceedings under this Act, is satisfied that any person....(c) has concealed the particulars of his income or deliberately furnished inaccurate particulars of such income, he...may direct that such person shall pay by way of penalty, ...in addition to any tax payable by him, a sum of...." The point that arises for decision is whether the assessee furnished the estimate of the tax under section 18A(2) on 13th September, 1952, knowing or having reason to believe that it was untrue. Now, section 18A(9) is one of the punishment sections of the Act. It is a common feature of every taxing statute to impose penalty for violation of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss accounts before him when he made the estimate. There is no reason to disbelieve the assessee's version that he based the estimate only on the trend of income as disclosed by his business account. It is not the department's case that even on the figures available to the assessee in September, 1952, the estimate submitted by him was not in accord with the book results. We have, therefore, to proceed on the footing that the assessee made an honest and fair estimate in September, 1952, upon which he paid the advance tax under section 18A. The assessee's failure to submit a revised return in March, 1953, towards the end of the financial year, is not a relevant consideration as the mens rea of the assessee at the time when he made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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