Civil penalty for non-payment of admitted tax upheld because default was proved and mens rea was not required.

Penalty for failure to pay admitted agricultural income tax under section 17A(3) was treated as a civil and coercive liability. Once default in payment of tax due on admitted income is established, the levy follows without proof of mens rea, unless the statute expressly requires it. The only procedural safeguard is a reasonable opportunity of being heard. The assessee's pleas of lack of knowledge and delay were not substantiated on the record, so interference in revision was not warranted and the challenge to the penalty failed.

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Issues: Whether penalty under section 17A(3) of the Agricultural Income-tax Act, 1950, for failure to pay tax on admitted income could be interfered with in revision.

Analysis: The provision was treated as creating a civil and coercive liability for default in payment of tax due on admitted income. On its language, once default is established, recovery of penalty follows and no separate element of mens rea is required. The only procedural safeguard is that the assessee must be given a reasonable opportunity of being heard. The grounds urged against penalty, including alleged lack of knowledge and delay, were not substantiated on the record and did not justify interference.

Conclusion: Interference with the penalty order was not warranted, and the challenge to the levy failed.

Ratio Decidendi: A statutory penalty for failure to pay admitted tax is a civil and coercive liability, and once default is established, mens rea need not be proved unless the statute so provides.

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