Assessed tax for section 271(1)(a) penalty is computed on reassessment, not the original assessment, when notice under section 148 is ignored.

For penalty under section 271(1)(a) where the assessee fails to furnish a return called for under section 148, the relevant "assessed tax" is the tax determined in the reassessment proceedings, not the tax from the original assessment. The governing principle is that the penalty base follows the assessment made on reopening because the default arises from non-compliance with the notice under section 148. The Tribunal's approach of using the difference between the first assessment and the reassessment was accepted, and the computation was held to depend on the reopened assessment figure.

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Issues: Whether, for levy and computation of penalty under section 271(1)(a), the expression "assessed tax" in a case involving a return filed in response to notice under section 148 refers to the tax determined in the reassessment or to the tax determined in the original assessment.

Analysis: The return filed in response to the original process was in time, and the default arose only when the assessee failed to furnish the return required under section 148. The governing provision requires penalty to be computed with reference to "assessed tax", and in a reassessment situation that expression is to be understood on the basis of the assessment made on reopening. The Tribunal's view that the difference between the first assessment and the reassessment forms the basis for computation was accepted.

Conclusion: The penalty under section 271(1)(a) is to be computed with reference to the assessed tax determined on reopening, not on the basis of the original assessment; the question was answered in the affirmative, in favour of the assessee.

Final Conclusion: The reference was answered by holding that reassessment tax is the relevant base for penalty computation in a return-filing default arising on notice under section 148.

Ratio Decidendi: For penalty on failure to furnish a return called for under section 148, the relevant assessed tax is the tax determined in the reassessment proceedings, and that figure governs the computation of penalty under section 271(1)(a).

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