9911796707
TMI Blog1999 (5) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner of Income-tax, vide the order dated March 8, 1999. The assessee had deducted tax from interest other than interest on securities in the financial year 1996-97 and he has deducted tax to the tune of Rs. 9,67,94,972 as T.D.S., but that has not been deposited to the account of the Central Government within the time allowed under the statute. The delay varied from one month to twelve months in respect of different deposits. For that failure on the part of the assessee, the Assistant Commissioner of Income-tax has initiated penalty proceedings under section 221 of the Income-tax Act. The case was listed 2/3 times. Notice was also served 2/3 times, but none appeared. Only on December 17, 1998, Mr. K. P. Trivedi appeared and fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the Chief Commissioner of Income-tax. To consider whether the Assistant Commissioner of Income-tax has jurisdiction or not, some provisions are necessary to be referred to. Subsection (7A) of section 2 of the Income-tax Act defines "Assessing Officer", which reads as under : "2. (7A) 'Assessing Officer' means the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision of this Act, and the joint Commissioner or joint Director who is directed under clause (b) of sub-section (4) of that section to exercise or perfo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of tax at source made by the Government of West Bengal as per provisions of sections 192, 193, 194, 194A, 194BB, 194C, 194D and 194F of the Income-tax Act, 1961." The Chief Commissioner has conferred power on the Assistant Commissioner of Income-tax (TDS), Circle 21(1), who has imposed penalty under section 221 of the Act, therefore it cannot be said that the Assistant Commissioner of Income-tax (TDS) has, no power to impose penalty under section 221 of the Act of 1961. Dr. Pal, learned counsel for the appellant, further submits that by this notification, the Chief Commissioner of Income-tax cannot empower the Assistant Commissioner of Income-tax, as penalty for default can be imposed by the joint Commissioner of Income-tax only under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (b) provides--"pay the whole or any part of the tax as required by or under sub-section (2) of section 115-O". Clause (ii) provides default regarding the second proviso to section 194B. That power has been conferred on the joint Commissioner of Income-tax. Thus it is clear that penalty under both the sections, is on different grounds. Therefore, it cannot be said that the powers which are conferred by the statute on the joint Commissioner have been conferred on the Assistant Commissioner. The joint Commissioner is not empowered to levy penalty where a person has failed to deposit the T.D.S. amount which has been deducted by any person. Therefore, we find no force in this submission of Dr. Pal. Dr. Pal also argued that once, interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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