Law: Income Tax Act, 1922

Section: 28(1)(a),28(1)(b)

Income-tax Act, 1922 -Sections 28(1)(a), 28(1)(b) -- Penalty -Failure to file return of income and to produce accounts -Penalty imposed by one order for both defaults -Amounts not quantified separately -Order, whether valid in law -Held no -Penalty for non-production of accounts -Whether exigible when no return was filed -Held no -- Failure to file return and produce books of account -Imposition of penalties for both defaults by one order -Not legal -Separate quantification making penalties identifiable necessary Corresponding Sections: Income-tax Ordinance, 1979 -Sections 108(a), 108(b), 110 -- ORDER {The order was passed by A. AHMED, Accountant Member}.--This appeal arises out of an order of the Appellate Assistant Commissioner. The facts of the case are as follows: a notice under Section 22(2) requiring the assessee to furnish a return for the assessment year 1958-59 was issued on 23rd May 1958. There was no compliance: but at the request of Mr. S. A. Khan I.T.P., extension of time till 16th August 1958 was allowed. As there was still no compliance a notice under Section 22(4) was served requiring the assessee to produce books of accounts on 16th September 1958. The assessee, however, defaulted. For non-compliance with the terms of the statutory notices under Sections 22(2) and 22(4) the Income-tax Officer made an ex parte assessment under Section 23(4) of the Act and also initiated proceedings under Section 28(1)(a) and (b). In the course of hearing the assessee took the plea that omission on the part of Mr. S.A. Khan, I.T.P., was responsible for the defaults. The plea was rejected and a penalty of Rs. 4,000 was imposed under Section 28(1)(a) and (b) in one order. The relevant part of the order reads: "As such for non-compliance to notice under Sections 22(2) and 22(4) without any reasonable ground I impose a penalty of Rs. 4,000 under Section 28(1)(a)(b)". When the matter came up before the Appellate Assistant Commissioner, he found that Mr. S.A. Khan, I.T.P., had not submitted any letter of authority in the course of proceedings for the year 1958-59. The plea of omission on the part of the Income-tax Practitioner was, therefore, rejected. The assessee,…

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