TMI Blog1980 (7) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed as a registered firm. The ITO initiated penalty proceedings under s. 271 (1)(a) read with s. 274 of the Act and issued a show-cause notice. The assessee filed a reply raising various objections. It is unnecessary for our present purpose to go into those objections as there are no materials on the point on which the reference has been made. The ITO held that the assessee was liable to penalty, under s. 271(1)(a) of the Act, of Rs. 15,335, being 2% of the tax for every month during which the default had continued. He calculated this penalty on the basis of the tax due from an unregistered firm, as envisaged by s. 271(2) of the Act. The assessee being aggrieved by the said order preferred an appeal before the AAC. The AAC dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining the tax payable, the tax already paid had to be deducted. The Supreme Court was of the view that the expression " the amount of tax, if any, payable by him " in the earlier part of s. 271(1)(a)(i) referred to the tax payable under a notice of demand. The words " the tax " in the latter part of the provision would only refer to " the tax ", if any, " payable " by the assessee mentioned in the earlier part of s. 271(1)(a)(i) of the Act. It was held, accordingly, that in calculating the penalty leviable under s. 271 (1)(a)(i) of the I.T. Act, 1961, for failure to file the return of income for the assessment year 1960-61, within the time without reasonable cause, the amount paid by the assessee under provisional assessment under s. 23B of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an unregistered firm which had been assessed under cl. (b) of s. 183 then, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-s. (1) shall be the same amount as would be imposable on that firm as if that firm were an unregistered firm. Therefore, for the purpose of imposition of penalty, the firm, even if it is registered, and if it has committed a default as contemplated under s. 271, it would be treated on the same basis as if it was an unregistered firm. In the case of an unregistered firm the tax in the circumstances would have been, as would be borne out from the facts on record, Rs. 15,805 but if it was a registered firm, then the tax payable would have been Rs. 5,657.44. Now, this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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