Law: Income Tax Act, 1922

Section: 18,18A(1),29,46(1)

Income-tax Act (XI of 1922)---S. 46(1) read with Ss. 18-A(1) & 29-Advance tax--Penalty for non-payment-Demand notice not mentioning status of assessee correctly but mistake not affecting identifiability of assessee-Assessee neither misled nor prejudiced by such mistake in notice-Proceedings initiated in pursuance of notice and imposition of penalty for non-payment of advance tax-Held, valid in law. Motilal and another v. Income-tax Officer (1962? 44 1 T R 454 and Tarak Nath Bagchi v. Commissioner of Income-tax (1946) 14 I T R 319 ref. JUDGMENT A. S. CHOWDHURY, J. --The following questions have been referred to us by the Income-tax Appellate Tribunal, Dacca under section 66(1) of the Income-tax Act for our opinion: "(1) Whether on flit: facts arid in the circumstances of the case the Tribunal via5 justified in holding that the mistake in recording a correct status has vitiated the purpose and the utility of the notice under section 18-A (1) of the Income-tax Act. (2) If the answer to question No. 1 above be in the negative whether the Tribunal was right to cancel the order of the penalty imposed under section 46(1) of the Income-tax Act?" In this case the assessment year concerned is 1961-62. A notice of demand under section 29 of the Income-tax Act (hereinafter called `the Act') for advance payment of tax under section 18-A(1) of the Act was slaved on the assessee on the 10th September, 1960. The receipt of this demand notice is not denied. But the assessee did not make any payment in compliance thereof. On the 20th January, 1961, the Income-tax Officer asked the assessee to show cause by the 31st January, 1961, why penalty under section 46(1) should not be imposed for failure to pay advance payment of tax under section 18-A(1) of the Act. The assessee did not take any step on receipt of this notice as well. As no cause was shown, the Income-tax Officer on 3rd May, 1961, imposed a penalty of Rs. 1,500, under section 46(1) of the Act. This order of penalty is under challenge. The assessee preferred an appeal before the Appellate Assistant Commissioner against this order of penalty. Having failed there, a further appeal was preferred before the Income-tax…

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