Law: Income Tax Act, 1922

Section: 18,18A.28(IB)

[Income Tax Act, 1922 (XI of 1922)].........Section 18A. 28 (IB)-Advance Tax -Penalty-Failure to pay first two installments of advance tax on the basis of assessment year 197]-72-No advance tax found payable on the basis of assessment for the year 1972-73 completed before the relevant previous year was out-Penalty for failure to pay the first two installments - Whether leviable -Held no. JUDGMENT [M. Karim ACCOUNTANT, Member].-This is an appeal against the order imposing penalty under Section 28(1B) of the Income Tax Act for the alleged default of provisions of Section 18A (I) of the Act, In this appeal an extremely interesting but by no means an easy question has come up for consideration. The appellant has challenged the penalty which was imposed under Section 28(IB) for default in paying the first and second installments of advance tax payable under Section 18A for the year 1973-74. The met which are not in dispute are briefly narrated as follows:- 2. The appellant was admittedly liable to pay the tax under Section ISA according to the income assessed for the assessment year 1971-72. He did not pay the first and second installments which fell due on the 35th September and 15th December, 1972, respectively. Before the third installment fell due the assessment for the succeeding previous year for the assessment' year 197Z-73 was completed on 8-1-1973 on a total income of Rs, 23,790 i.e., below Rs.25,000. The department did not impose any penalty under Section 46(l) for enforcing the payment of the first or second installments. The department also did not impose any penalty under section 28(IB) either for the whole of the year or for the default of the second and the third installments. The Income Tax Officer issued a notice under Section 28(3) on 27-11-1973 and the assessee submitted his written explanation' on 17-12-1973. In his explanation the appellant contended that the income assessed for the latest assessment year 1972-73. being less than Rs. 25,000, no advance tax was payable for the assessment year 1973-74. The Income tax Officer rejecting the explanation imposed the penalty as in his opinion, "the fact, however, remain that the assessee should have…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492