COMMISSIONER OF INCOME TAX Vs. C L BAHRI AND SONS
LAWS(CAL)-1983-6-6
HIGH COURT OF CALCUTTA
Decided on June 27,1983

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
C.L.BAHRI Respondents

JUDGEMENT

S.C.Sen, J. - (1.) The Tribunal has referred the following question under Section 256(2) of the I.T. Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the amount payable under Section 271(1)(a) of the Income-tax Ad:, 1961, shall bo calculated with reference to the actual amount of tax due and payable by the assessee on the date of imposition of the penally ?"
(2.) The assessee, M/s. C. L. Bahri & Sons of Howrah, was assessed to income-1ax in the status of U.R.F. The year of assessment involved is 1961-62 for which the relevant previous year ended on March 31, 1961. For the year under consideration, the assessee did not. file its return of income within the time allowed under Section 22(1) of the Indian I.T. Act, 1922. The assessee also failed to file the return within the time allowed by the notice served on it under Section 148 of the 1961 Act. A return was, however, filed by the assessee on April 20, 1964. Since the return was filed belatedly, the ITO initiated penalty proceedings against it under Section 271(1)(a) of the Act. The stand of the assesses in reply to the show-cause notice was that the return could not be filed because the assessee had share income from the firm, M/s. Bhari Engineering Co., and as the adjustment of the account of the firm took considerable time, there was delay in submitting the return. The explanation was, however, rejected by the ITO who levied a penalty of Rs. 14,420 against the assessee under Section 271(1)(a) of the Act.
(3.) Aggrieved by the said order, the assessee preferred an appeal before the AAC. The AAC, while rejecting the contention of the assessee that there were sufficient reasons for the delayed filing of the return, accepted the contentions of the assessee that the penalty leviable should have been imposed with reference to the tax which was payable on the date of imposition of the penalty and directed the ITO to compute the penalty accordingly.;


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