Law:

Section:

Section 140A of the Income-tax Act, 1961 [as it stood prior to 1-4-1976] - Sell-assessment - For assessment year 1975-76 assessee filed its return on 28-1-1976 - Tax due to be paid on sell-assessment was not paid within prescribed period - ITO imposed penalty as per section 140A, 83 it stood on date on which retain was filed -AAC reduced amount of penalty on ground that there was no wilful default on assessee's part and further rejected revenue's contention that penalty be imposed as per amended provisions of section 140A with effect from 1-4-1976 - Whether Tribunal was justified in upholding AAC's order - Held, yes Facts For the assessment year 1975-76, the assessee, a partnership firm, filed Its return on 28-1-1976. A certain amount of tax was due to be paid by the assessee after adjusting the advance tax paid. The tax as per the return on self-assessment was not paid within the period of thirty days as required by section 140A as It stood on the date on which the return was filed. The assessee made the payment on receipt of notice of penalty proceedings. The ITO imposed a penalty of certain amount in accordance with the provisions of section 140A for the non-compliance of the provisions and continued default. On appeal, the AAC reduced the amount of penalty on the ground that there was no wilful default on the part of the assessee. The contention of the revenue that the penalty should be imposed under the amended provisions of section 140A was not accepted. On second appeal to the Tribunal, the order of the AAC was upheld. On reference: Held The ingredients of a default under section 140 A as it stood prior to the amendment in 1976 and after the amendment are totally different. Maybe that the default continues even after the amendment; but such a default is not one in respect of which a penalty as contemplated by the amended subsection (3) of section 140 A can be imposed. There cannot be any doubt that the default in payment of tax within thirty days after the filing of the return is a continuing default on the date on which the amendment as per the Taxation Laws (Amendment) Act, 1975 came into force. The default continues until actual payment is made on…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492