Law: Income Tax Act, 1922

Section: 28(1),66(1),22(2),22(4),28(1)(a),31,44F

Income-tax Act, 1922 -- Sections 28(1) (a), 28(1) (b), 31(4) (f) -- Penalty -- Powers of Appellate Assistant Commissioner to impose penalty -- Income-tax Officer imposing penalty under clauses (a) and (b) of Sec. 28(1) without quantifying the amount separately - A. A. C. holding that penalty so imposed was not legal but imposing penalty under clause (a) to the extent of 10 per cent of tax payable -- Penalty imposed without initiating proceedings under Sec. 28(1) -- Whether valid in law -- Held no --Income-tax Officer imposing penalty under both clauses (a) & (b) of Section 31(4) -- Appellate Assistant Commissioner on appeal holding that no penalty could be imposed under clause (b) but imposing fresh penalty under clause (a) and thus not maintaining Income-tax Officer's order -- Order of Appellate Assistant Commissioner, held, not within ambit of Section 31(4) (f) as there could be no variation of non-existing order - JUDGMENT A.S. CHOWDHURY J. The Income-tax Appellate Tribunal, Dacca has referred the following question under Section 66(1) of the Income-tax Act (hereinafter called the Act) for our opinions: "Whether in the facts and circumstances of the case Tribunal was right in holding that imposition of penalty under both the clauses (a) and (b) of Section 28(1) of the Income-tax Act in one order without quantifying the penalty separately was void and illegal?" In this case a notice under Sec. 22(2) was served on the assessee requiring him to furnish a return for the assessment year 1958-59. This notice was issued on the 23rd May, 1958 but the assessee did not comply with the same. Thereafter on the 19th September, 1958 the I.T.O. issued another notice under Section 22(4) of the Act requiring him to produce book of accounts. But the assessee did not comply with this direction either. In these circumstances the Income-tax Officer wade an ex parte assessment under Section 23(4) of the Act and also in a proceeding under Sec. 28(1) (a) imposed a penalty of Rs. 4,000 on the assessee under clauses (a) and (b) of Section 28(1) of the Act. He did not specify under which particular clause the penalty of Rs. 4,000 was imposed. The assessee thereafter went in appeal…

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