Law: Income Tax Act, 1922

Section: 22,28(1)(a),28(b)

Income-tax---Penalty---Penalty cannot be imposed on a man after his death for a default committed in his life time---Income-tax Act (XI of 1922), S.28(1)(a) & (b). Penalty proceedings cannot be started against the -representative of deceased for any default committed by the deceased nor can any pending penalty proceedings be continued against the representative after the death of the original assessee though the representative being an assessee within the meaning of the Act would be liable to penalty for his own default as for example, penalty under section 46(1) for default being the tax assessed on him under section 24-B(1). If a penalty has already been imposed on the deceased prior to his death it will be demanded from the representative and collected out of the estate. There is no provision for any penalty, which might be imposed on a deceased person. Law does not provide for imposition of penalty on a man after his death for a default committed by him in his lifetime. Punjab Province v. The Federation of Pakistan (1957) 32 ITR 198 ref. ORDER M. AMEEN (MEMBER): --These five appeals arise out of the consolidated order of the Appellate Assistant Commissioner concerning the five orders of penalty imposed in terms of sections 28(1)(a) and 28(1)(b) for the five tax years 1943-44, 1944-45, 1945-46, 1946-47 and 1947-48. Identical objections have been stated in numerous paragraphs by the assessees representative. A few of grounds described as additional were filed at as late as 15th April, 1960. They do not in fact raise any new ground not already set down for our decision in the petitions of appeal filed on 30th July, 1958. The grounds taken by the assessee need not be noted here in detail but the main objections can be summarised without loss of substance as below:-- (1) That the penalty imposed under section 28 of the Income-tax Act is legally invalid as the person whom the penalty was imposed should be alive not when the proceedings are initiated against him but at the time when the order imposing penalty was passed; and (2) Alternatively inasmuch as the alleged defaults were purely technical appropriate relief should be granted. 2. The facts of the case…

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