TMI Blog1976 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered firm making the provisions of section 183(b) applicable ?" The facts are in a narrow compass. The assessee is a firm constitued under a deed of partnership executed on May 10, 1960. It closed its accounts for the first time on June 30, 1961. For the assessment year 1962-63, the return of income was due by June 30, 1962. It was, however, filed only on Febuary 28, 1964. The firm applied for registration for the purposes of assessment to income-tax for 1962-63. However, the firm was not registered. In making the assessment on the firm on February 19, 1966, the Income-tax Officer determined the total income of the firm at Rs. 38,475. He stated in the assessment order that the firm was treated as registered firm under the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was an unregistered firm treated as a registered firm only for the purpose of section 183(b) of the Act and that for the purpose of liability to penalty, the assessee should be treated as an unregistered firm. It, therefore, allowed the appeal of the department and confirmed the levy of penalty as made by the Income-tax Officer. It is this order of the Tribunal that is challenged by the assessee in the form of the question set out already. In order to appreciate the question raised, it is necessary to refer to the relevant provisions. Section 183(b) of the Income-tax Act, runs as follows: "In the case of an unregistered firm, the Income-tax Officer--... (b) if, in his opinion, the aggregate amount of the tax payable by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person shall pay by way of penalty in addition, to the amount of the tax, if any, payable by him, a sum equal to two per cent of the tax for every month during which the default continued, but not exceeding in the aggregate fifty per cent. of the tax. Section 271(2) of the Act runs as follows: "When the person liable to penalty is a registered firm or an unregistered firm which has been assessed under clause (b) of section 183, then, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-section (1) shall be the same amount as would be imposable on that firm if that firm were an unregistered firm." Thus, section 271(2) contemplates the firm being treated as an unregistered firm for pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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