9911796707
TMI Blog1994 (12) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... year ", in relation to the assessment year, commencing on the 1st day of April, 1989, means the period which begins with the date immediately following the last day of the previous year relevant to the assessment year commencing on the 1st day of April, 1988, and ends on the 31st day of March, 1989. It is also contended by the petitioner that the said circular was published in the journal Income Tax Reports. Accordingly, the petitioner-company filed its return of income for the assessment year 1988-89, comprising the period of 18 months from October 1, 1986, to March 31, 1988, on August 12, 1988. The said return was accompanied by an application dated August 9, 1988, under section 3(4) of the Income-tax Act, 1961, for permitting the petitioner to change the period of assessment on the basis of the circular issued by the Central Board of Direct Taxes. By the said application, the petitioner requested that the change in the period of the previous year from October 1, 1986, to March 31, 1988 (18 months), be approved by considering the circular issued by the Central Board of Direct Taxes, and the press note dated June 10, 1988. The petitioner has reproduced in the petition the conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Board of Direct Taxes. As against this, Mr. Shelat, learned counsel appearing on behalf of the respondent, referred to the affidavit-in-reply, and pointed out that there would be loss of revenue, if the petitioner is permitted to change the previous year. For this purpose, he has relied upon the statement annexure "A" produced along with the affidavit-in-reply. In our view, considering the statement annexure-A to the affidavit-in-reply, it is apparent that the approach adopted by the respondent is totally unreasonable. From the said statement, it is clear that if the period is taken as ending on September 30, 1987, the total tax payable would be Rs. 92,58,318, and if it is taken as ending on March 31, 1988, the total tax payable would be Rs. 1,12,75,081. The respondent wants to add Rs. 89,25,000 to Rs. 92,58,318 by holding that the petitioner is liable to pay penalty under section 271(1)(c) of the Income-tax Act. For this purpose, it is necessary to refer to the said statement as a whole, which is as under : ------------------------------------------------------------------------------------------------- & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 92,58,318 1,12,75,081 Less : T. D. S. 4,88,493 4,88,493 -------------------------------------- & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -3 months) 2,55,861 Penalty under section 273(1)(b) : (1) Assessed tax 92,58,318 1,12,75,081 (2) 83.33 per cent. of above 81,77,872 99,59,279 (3) Less : Advance tax and T. D. S. 38,59,833 &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 3,52,223 Interest under section 216 1,96,174 2,55,861 Penalty under section 273(1)(b) : Minimum 4,31,803 6,09,942 Penalty under section 271(1)(c) : Minimum 89,25,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irrelevant attitude, by holding that penalty under section 271(1)(c) of the Income-tax Act is required to be imposed, without considering the fact that the said section is not applicable in the present case. Section 271(1)(c) would apply to a case where the Assessing Officer, in the course of any proceeding under the Act, is satisfied that any person has concealed the particulars of his income, or has furnished inaccurate particulars of his income, in which case he may direct that such person shall pay, by way of penalty, the amount as specified therein. In the present case, there is no question of concealment of any particulars of the income of the petitioner-company. It is nowhere pointed out in the affidavit-in-reply as to which particulars are suppressed by the petitioner-company. In the petition itself, the petitioner has annexed a statement showing the computation of taxable income, and revenue for the previous year ending on September 30, 1987 (annexure "E"), and a statement showing the computation of total income and income-tax payable for the previous year ending on March 31, 1988 (annexure "F"). The said statements are on the basis of the audited accounts of a public limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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