COMMISSIONER OF INCOME-TAX Vs. `SHYAM SUNDAR TEA CO. PVT. LTD

JUDGEMENT

(1.) THE short, but interesting, question that arises for decision in this income -tax reference is whether income -tax due from the assessee which could not be recovered summarily under section 231 of the Income -tax Act, 1961 (hereinafter called "the act"), can be recovered by way of penalty. The reference was made in the following terms :

(2.) ONLY a few facts, which are necessary for disposing of this reference, may be noticed : It is seen from annexure "A" that the Income -tax Officer, Collection, Dibrugarh Circle, Dibrugarh, passed an order under section 221 of the Act as follows :

(3.) IN his letter dated 14 -12 -1967, the managing director stated that the payment of tax on dividend amounting to Rs. 72,400 has not been made due to oversight. As this was unconvincing and unacceptable, a notice was duly served on the principal officer on 16 -12 -1967, to show cause why he should not be treated as in default and penalty under section 221(1) should not be imposed. The date of hearing was fixed on 19 -12 -1967.