Law: Income Tax Act, 1922

Section: 34,34A,18A(2),(3),(6),35

Income-tax Act (XI of 1922)----S. 34-A read with Ss. 18-A(2), (3), (6) & 35-No estimate submitted under provisions of S. 18-A(2) or 18-A(3)-Provisions of S. 13-A(6), held, not attracted and Inspecting Assistant Commissioner devoid of jurisdiction under S. 34-A to interfere with orders passed pursuant to such principle. ORDER M. T. SIDDIQUI (PRESIDENT).---The appeal by a public limited company contests the order of the Inspecting Assistant Commissioner issued under section 34-A of the Income-tax Act, in the following circumstances. The facts of the case show that for the assessment under appeal the appel­lant had paid advance tax under section 18-A of the Income-tax Act, on the basis of the latest completed provisional assessment for the year 1973-74. According to this assessment the total demand payable was Rs. 9,61,760 but the appellant had made actual payment of Rs. 9,42,247 only. It is explained that tax payable on the amounts attributed towards labour welfare fund contributions were retained, as according to the assessee these were admissible expenditure against the returned income for the year 1973-74. The Income-tax Officer however, missed the levy of penal interest under section 18-A (6) and accordingly passed an order under section 35 of the Income-tax Act, to charge this levy. The appellant thereupon made a representation to the Income-tax. Officer contending that the provisions of section 18-A (6) were not applicable to its case, as it had not submitted any estimate of its own under provisions of section 18-A (2). The Income-­tax Officer accepted this plea and by another order under section 35 cancelled his original order passed under section 35 of the Act. The learned Inspecting Assistant Commissioner thereupon considered that the second order of the Income-tax Officer was erroneous in law, as the provisions of sec­tions 18-A (6) and 18-A (8) were applicable to this case. He accordingly issued a notice under section 34-A of the Income-tax Act to the appellant, who once again contended before the Inspecting Assistant Commissioner that the subsequent order under section 35 passed by the Income-tax Officer was perfectly legal and suffered from no…

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