COMMISSIONER OF INCOME-TAX DELHI Vs. TEJA SINGH
HIGH COURT OF PUNJAB AND HARYANA
COMMISSIONER OF INCOME-TAX DELHI
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(1.) THESE two references under Sub-section (1) of Section 66 Income-tax Act, raise a common question of law viz. , whether a person who fails to comply with the provisions of Section 18a (3)can be punished under the provisions of Section 28 (1) of the said Act.
(2.) TWO persons, who were not previously assessed to income-tax, submitted returns of their in-come 'suo motu' under the provisions of Section 18a, income-tax Act As these returns were submitted after the 15th day of March, the Income-tax authorities imposed certain penalties under the provisions of Sub-section (9) of Section 18a read with Section 28, Income-tax Act. The Appellate Tribunal set aside the order of the Commissioner of Income-tax and referred the following question to this Court under the provisions of Sub-section (1) of Section 66, income-tax Act:
"whether on a true construction of the terms of Sub-section (9) of Section 18a and of Section 28, Income-tax Act, 1922, penalty can be imposed for non-compliance with the requirements of sub-section (3) of Section 18a of that Act?"
(3.) SUB-SECTION (9) of Section 18a may for convenience be split up into two parts. The first part provides that if the Income-tax Officer is satisfied that any assessee had furnished under sub-section (2) or Sub-section (3) of Section 18a estimates of the tax payable by him which he knew or had reason to believe to bo untrue, the assessee shall be deemed to have deliberately furnished inaccurate particulars of his income, and the provisions of Section 28, so far as may be, shall apply accordingly. Section 28 (1) (c) declares that if a person has concealed the particulars of his income or deliberately furnished inaccurate particulars of such income he shall be liable to pay the penalty set out] in the body of the section. There can be little doubt that a person who contravenes the provisions of Section 18a (9) (a) can be punished 'under the provisions of Section 28 (1) (c ).;
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