Law: Income Tax Act, 1922

Section: 18,18A(7)

[Income Tax Act, 1922 (Xl of 1922)].....Section 18A(7)-Additional Tax-Levy of additional tax under sub-section (7)-- Whether condition precedent is under-estatement by assessee of advance tax payable or wrong deferment of the tax an apart of his income Held yes. Under sub-section (7) of Section 18A the Income Tax Officer may direct the assessee to pay an additional amount of tax in case the assessee has under-estimated the advance tax payable under sub-sections (2) and (3) or wrongly deferred the payment of the tax under sub-section (4) Sub-section (7) of Section 18A was not in terms applicable to the facts of this case. As such the Income Tax Officer was not at all justified in imposing the additional tax under this sub-section for the assessment year in question. B. Income Tax Act, 1922 (XI of 1922)-Section 18A (8)-Additional Tax--Completion of regular assessment-Payment of advance tax falling short of 80 per cent on the basis of assessee's own estimate of tax under sub-sections (2) or (3)-Whether additional lax leviable as per calculation envisaged in sub-section (8)-Held yes. In respect of the assessment year 1969-70 the regular assessment was completed on 30-12-1971. In this connection sub-section (6) of Section 18A lays down that where, on making the regular assessment, the Income Tax Officer finds that no payment of tax has been made in accordance with sub-sections (1) to (7) of this section additional tax calculated in the manner laid down in sub-section (6) shall be added to the tax determined on the basis of regular assessment. In these circumstances, therefore, the Tribunal was justified in holding that the liabilities of the assessee to additional tax had to be worked out under sub-section (8) of Section 18A of the Act. C. Income Tax Act, 1922 (XI of 1922)-Section 18A (9) (a), 46.1 Additional Tax-Penalty-Delayed payments of installments of advance tax- Whether penalty under Section 18A (9) (a), read with Section 46(1), and not additional tax under sub-section (7) of Section 18A is leviable-Held yes; Sub-section (9) of Section 18A inter alia pressly lays down that if any assessee does not pay on the specified date any installment of tax that he is…

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