Law: Income Tax Act, 1922

Section: 18

Income-tax - Penalty, - Non-payment of penalty - Whether penalty can be imposed for non-payment of penalty. The provisions of the Indian Income-tax Act, 1922, do not warrant the imposition of a penalty for the non-payment of penalty levied by an earlier order. Shri Chhotey Lal v. Income-tax Officer, C-Ward (1962) 46 I T R 762 not fol. Abraham (C. A.) v. Income-tax Officer, Kottayam (1961) 41 I T R 425; Commissioner of Income-tax, v. Bhikaji Dadabhai & Co. (1961) 42 I T R 123; Mathew (M. M.) v. Second Addl. Income-tax Officer, Kottayam (1956) 29 I T R 456 and Padmanabba Menon Krishna Menon v. Commissioner of Income-tax (1957) 32 I T R 651 ref. JUDGMENT GOVINDAN NAIR, J.--This appeal is by unsuccessful writ applicants who filed a petition before this Court to set aside an order, Exh. P-8, imposing penalty for non-payment of certain amounts covered by two earlier penalty orders, Exhs. P-1 and P-2. Exhs. P-1 and P-2 were passed against the appellants for alleged concealment of income and for non-payment of advance tax under section 18-A of the Indian Income-tax Act, 1922. The question is whether a penalty can be imposed for non-payment of penalty. The submission on behalf of the appellants is that the provisions in the Indian Income-tax Act, 1922, which admit tedly in the relevant statute, do not warrant such procedure. In this submission the appellants are supported by a decision of this Court in M. M. Mathew v. Second Additional Income-tax Officer, Kottayam ((1959) 29 I T R 456). There is yet another decision of this Court in Padmanabha Menon Krishna Menon v. Commissioner of Income tax ((1957) 32 I T R 651), where the same view has been taken. Notwithstanding the above decisions of this `Court, counsel on behalf…