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Commissioner of Income-tax (Central), Calcutta Vs. W.H. Harton and Co. Ltd., Calcutta - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Judge
Reported in(1973)2CTR(SC)461; 1971(III)LC820(SC)
ActsIncome Tax Act, 1961 - Sections 1(3), 256(1), 271(1) and 273; Indian Income Tax Act, 1922 - Sections 18A(1), 18A(2), 18A(9), 22(2), 297(1) and 297(2)
AppellantCommissioner of Income-tax (Central), Calcutta
RespondentW.H. Harton and Co. Ltd., Calcutta
Cases ReferredJain Brother and Ors. v. Union of India and Ors.
Excerpt:
.....penalty - assessee failed to file return within time specified in notice under section 22 (2) of act of 1922 - initiation and imposition of penalty under section 271 (1) (a) of act of 1961 valid. - - (1) whether, on the facts and circumstances of the case, the initiation and imposition of penalties under section 273(a) of the 1961 act for the offence committed by the assessee under section 18a(2) read with section 18a(9) of the 1922 act, in respect of the assessment years 1960 61 and 1961-62 are valid ? (2) whether, on the facts and circumstances of the case, the initiation and imposition of a penalty under section 271(1)(a) of the 1961 act in respect of the assessment year 1961-62 for the assessee's failure to file a return within the time specified in response to a notice under..........of rs. 1,60,174/-by way of advance tax in relation to the assessment year 1960-61, on 16-6-59, the assessee filed an estimate under section 18a(2) showing an estimated income of rs. 1 lakh. on 16-3-60, the assessee filed a revised estimate showing an income of rs. 1,80,000/-on which advance tax was payable and paid a tax of rs. 81,000/-. thereafter, the regular return under section 22 for the assessment year 1960 61 was filed on 20-2 1961 declaring a total income of rs. 2,20,352/-.(b) for the assessment year 1961-62, there was a like notice under section 18a(1) demanding an advance tax of rs. 1,60,174/-. on 15 6-60 the assessee filed on estimate showing nil income and paid no advance tax. a revised estimate was filed on 21-3-61 showing an income of rs. 80,000/-but this was much beyond.....
Judgment:

K.S. Hegde, J.

1. This is a reference Under Section 256(1) of the Income-tax Act, 1961. Two questions referred for the decision in this Court are:

(1) Whether, on the facts and circumstances of the case, the initiation and imposition of penalties Under Section 273(a) of the 1961 Act for the offence committed by the assessee Under Section 18A(2) read with Section 18A(9) of the 1922 Act, in respect of the assessment years 1960 61 and 1961-62 are valid ?

(2) Whether, on the facts and circumstances of the case, the initiation and imposition of a penalty Under Section 271(1)(a) of the 1961 Act in respect of the assessment year 1961-62 for the assessee's failure to file a return within the time specified in response to a notice Under Section 22(2) of the 1922 Act are valid ?

2. The material facts as found by the Tribunal are set out in the statement Of the case. They read thus:

2. The three appeals before the Tribunal related to the Income-tax assessments of M/s. W.H Harton & Co Ltd, Calcutta (hereinafter referred to as 'the assessee5') for the assessment years 1960-61 and 1961-62 (the previous years being the calendar years 1959 and 1960) and arose in the following circumstances.

3.(a) On 12-5-59, the Income-tax Officer served on the assessee a notice Under Section 18A(1) of the Indian Income-tax Act, 1922 (hereinafter referred to as 'the 1922 Act') to pay during the financial year 1959-60 and on the dates specified, a sum of Rs. 1,60,174/-by way of advance tax in relation to the assessment year 1960-61, On 16-6-59, the assessee filed an estimate Under Section 18A(2) showing an estimated income of Rs. 1 lakh. On 16-3-60, the assessee filed a revised estimate showing an income of Rs. 1,80,000/-on which advance tax was payable and paid a tax of Rs. 81,000/-. Thereafter, the regular return Under Section 22 for the assessment year 1960 61 was filed on 20-2 1961 declaring a total income of Rs. 2,20,352/-.

(b) For the assessment year 1961-62, there was a like notice Under Section 18A(1) demanding an advance tax of Rs. 1,60,174/-. On 15 6-60 the assessee filed on estimate showing Nil income and paid no advance tax. A revised estimate was filed on 21-3-61 showing an income of Rs. 80,000/-but this was much beyond the date within which the assessee could file such a revised estimate Under Section 18A(2).

(c) For the assessment year 1961-62, a notice Under Section 22(2) of the 1922 Act was served on the assessee on 25-5-1961, calling for a return of income by 30-6-61. The return, however, was actually filed only on 2-12-1961.

4. On 13-9-1961, Income Tax Act, 1961 (Act XLIII of 1961) (hereinafter referred to as the 1961 Act') received the assent of the President. Under Section 1(3), this Act came into force, save as otherwise provided therein, on the 1st April, 1962. By Section 297(1) of the Act, the 1922 Act was repealed, subject to the savings contained in Sub-section (2) of that section.

3. Both the questions referred for the decision of this Court are now covered by the decisions of this Court. So far as the first question is concerned, it is covered by the decision of this Court in Commissioner of Income Tax, Delhi (Central) v. Singh Engineering Works (P) Ltd : [1970]78ITR90(SC) . So far as the second question is concerned, it is covered by the decision of this Court in Jain Brother and Ors. v. Union of India and Ors. : [1970]77ITR107(SC) .

4. In view of these decisions, we answer both these questions in favour of the Department. The respondent is ex-parte and on our request Mr. S. Mitra was good enough to assist us in the case. We are thankful to him for the assistance he gave to us.

5. In the circumstances of the case, we make no order as to costs.


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