Penalty for delayed tax payment applies only when admitted tax is unpaid before or with the return actually filed.

Penalty under section 17A(3) of the Kerala Agricultural Income-tax Act, 1950 applies only where admitted tax is not paid before or along with the return actually filed. The relevant default is non-payment in connection with the return filed, not mere delay in payment up to the due date for filing the return. If the return itself is filed late and payment follows before filing, section 17A(3) is not attracted; any consequence for delayed filing must arise under a different provision. On that basis, the penalty was not leviable on the assessee and the challenge to the penalty failed.

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Issues: Whether penalty under section 17A(3) of the Kerala Agricultural Income-tax Act, 1950 is leviable when the admitted tax is paid after the due date for filing the return but before the return is filed.

Analysis: Section 17A(3) fastens penalty on a person who fails to pay the tax in accordance with section 17A(1), which contemplates filing of the return and payment of the tax along with the return. The material default is non-payment before or along with the return actually filed, and not mere non-payment on the notional due date for filing the return. Where delay in filing the return itself results in delayed payment, the remedy lies elsewhere and not under section 17A(3).

Conclusion: Penalty under section 17A(3) was not leviable on the assessee on the facts of the case and the challenge to the penalty failed.

Final Conclusion: The appeal was dismissed and the view that section 17A(3) does not apply to mere delay in payment before the return is filed was affirmed.

Ratio Decidendi: Penalty under section 17A(3) is attracted only by failure to pay admitted tax before or along with the return actually filed, and not by mere delay in payment up to the due date for filing the return.

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