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B. Damodar and Company Vs. Additional Commissioner of Income-tax and anr. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKarnataka High Court
Decided On
Case NumberWrit Petition No. 1385 of 1971
Judge
Reported in[1974]97ITR70(KAR); [1974]97ITR70(Karn)
ActsIncome Tax Act, 1961 - Sections 271(1)
AppellantB. Damodar and Company
RespondentAdditional Commissioner of Income-tax and anr.
Appellant AdvocateB.V. Katageri, Adv.
Respondent AdvocateBalakrishna, Adv. for ;S.R. Rajasekhara Murthy, Adv.
Excerpt:
.....english for transaction of business of the state legislature. it is unfortunate that even after 50 years of the state re-organisation on the basis of language and nearly 45 years after the passing of state official languages act, 1961, the state still relies on english language for issuing simple notifications. it only shows the lack of will on the part of the government in implementing the legislative mandate and the aspirations of the people of the state. even the notifications issued by the departmental heads continue to be in english contrary to the legislative intent. the government is not sincere in implementing the provisions of the act. the government should take steps to ensure that this act is implemented in letter and spirit throughout the state of karnataka and kannada shall.....govinda bhat, c.j. 1. the petitioner was an assessee to tax under the income-tax act, 1961, for the assessment year 1966-67, the assessing authority determined the amount of tax at rs. 14,850 after adjusting a sum of rs. 2,000 towards the advance tax paid. the balance tax due is rs. 12,850 and a demand notice was issued for the said balance amount. 2. penalty proceedings were taken under section 271(1) of the act and the penalty amount was computed on the total tax assessed but not on the balance tax payable. the revision petition preferred by the assessee to the commissioner of income-tax was dismissed. 3. the only contention by the learned counsel for the petitioner assesses before us was that tax payable is not the same thing as tax assessed as held by the supreme court in commissioner.....
Judgment:

Govinda Bhat, C.J.

1. The petitioner was an assessee to tax under the Income-tax Act, 1961, for the assessment year 1966-67, The assessing authority determined the amount of tax at Rs. 14,850 after adjusting a sum of Rs. 2,000 towards the advance tax paid. The balance tax due is Rs. 12,850 and a demand notice was issued for the said balance amount.

2. Penalty proceedings were taken under Section 271(1) of the Act and the penalty amount was computed on the total tax assessed but not on the balance tax payable. The revision petition preferred by the assessee to the Commissioner of Income-tax was dismissed.

3. The only contention by the learned counsel for the petitioner assesses before us was that tax payable is not the same thing as tax assessed as held by the Supreme Court in Commissioner of Income-tax v. Vegetable Products Ltd., : [1973]88ITR192(SC) According to the said decision, the amount of penalty has to be computed on the balance tax due for which notice of demand is issued after making the order of assessment and not on the tax assessed.

4. In that view, the order of the Commissioner impugned (exhibit H), in so far as it relates to the assessment year 1966-67, cannot be supported and is liable to be quashed. Accordingly, we allow this writ petition, quash the impugned order of the Commissioner (exhibit H) in respect of the assessment year 1966-67, and further direct the Commissioner to dispose of the petitioner's revision petition in accordance with law and in the light of the decision of the Supreme Court stated above. It is ordered accordingly. No costs.


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