COMMISSIONER OF INCOME TAX Vs. WESMAN ENGINEERING CO P LTD
LAWS(CAL)-1975-11-13
HIGH COURT OF CALCUTTA
Decided on November 13,1975

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
WESMAN ENGINEERING CO.(P.)LTD. Respondents


Referred Judgements :-

COMMISSIONER OF INCOME TAX VS. VEGETABLE PRODUCTS LTD [REFERRED TO]





JUDGEMENT

Dipak Kumar Sen, J. - (1.)The facts admitted and/or found as appearing from the statement of the case in this reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, West Bengal I, Calcutta, may be briefly narrated as follows: In the relevant assessment year, namely, 1966-67, M/s. Wesman Engineering Co. (P.) Ltd., the assessee, submitted its return of income on the 27th September, 1966. On the basis of its return the assessee should have deposited a sum of Rs. 93,105 as tax under Section 140A(3) of the Income-tax Act, 1961, by the 27th October, 1966. Instead of depositing the said amount the assessee wrote a letter to the Income-tax Officer on the 3rd November, 1966, requesting the Income-tax Officer to adjust the advance tax paid amounting to Rs. 65,826 from the total amount of tax due. The officer was also informed that the assessee had difficulties in the matter of depositing the tax within time on account of the number of intervening holidays and also on account of the fact that the funds of the assessee had been depleted on account of payment of bonus to its staff and workers. The assessee sought permission to pay the balance in two equal instalments.
(2.)The assessee further addressed a letter to the Income-tax Officer dated 4th November, 1966, for extension of time for payment of the aforesaid tax reiterating the circumstances under which payment could not be made. This letter was in reply to the letter of the Income-tax Officer dated the 29th October, 1966. The Income-tax Officer was also requested to make a provisional assessment under Section 141 of the Income-tax Act, 1961, and to issue necessary challan for payment of the balance tax.
(3.)The Income-tax Officer did not accept the submissions of the assessee and levied a penalty of Rs. 18,620. The assessee wrote another letter dated the 10th January, 1967, setting out the circumstances and contended that the order of penalty was not justified. It was stated, inter alia, that the assessee had deposited a sum of Rs. 50,000 on the 7th November, 1966, and a further sum of Rs. 43,141 on the 13th December, 1966, in terms of the provisional assessment.


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