Law: Income Tax Act, 1922

Section: 46,46(1)

[Income Tax Act, 1922 (Xl of 1922)].....Section 46(1)-Penalty- Demand created under Martial Law Regulations Nos. 43/48- Default in payment of the demand- Whether penalty under sub-section (1) of Section 46 leviable-Held no-Provisions of Section 46 expIained-Martial Law Regulations Nos. 43/48, para 6(1)- Central Board of Revenue Order No. C. 16(32)-ITP/53(Pt.1), dated 5 -9-1959; Penalty Linder sub-section (1) of Section 46 can be levied in case of default in the payment of the tax due from the assessee in default under the Income Tax Act. These provisions of their own force are not applicable to the demand for the recovery of the tax payable in virtue of the provisions of the Martial Law Regulation Nos. 43/48. In pursuance to this provision [para 6(1) of Regulations No. 43/48] the Central Board of Revenue by its Circular No. 16(30)ITP/59(Pt. 1), dated the 5th of September 1959, issued an order directing that the provisions of Sec, 46 of the Income Tax Act, and all orders or directions issued there under shall, so far as may be apply to "the recovery of tax" payable in virtue of the said Regulation. It may be seen that under this order, only provisions of Section 46 of the Act relating to the "recovery of tax", were adapted and made applicable to the tax payable in virtue of the Regulation, Section 46 of the Income Tax Act can be divided into parts. Sub-section (I) of Section 46 deals with the imposition of penalty on an assessee in default in making payments of the income tax. The rest of Section 46 mostly contains machinery provisions and regulates the mode of recovery of tax, As stated above, the adaption made by the Central Board of Revenue is confined to the provisions contained in Section 46 of the Income Tax Act relating to the recovery of tax, which properly forms the subject-matter of sub-sections (2) to (10) of the section. There is nothing in the order passed by the Central Board of Revenue to show that the provisions contained in sub-section (1) of Section 46 relating to the imposition of penalty on the defaulter in the payment of income tax were expressly made applicable to the tax payable in virtue of the Regulation. Indeed in the scheme of the…

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