Renumbering of advance tax provisions did not defeat penalty where the substantive default and liability remained unchanged.

A subsequent regrouping and renumbering of the advance tax provisions did not affect liability for penalty for failure to furnish an estimate, because the substantive obligation and penal consequence remained unchanged. The court treated the governing law as the law in force on 1 April 1976, or at least the law applicable when the default was committed. Section 212(3) was renumbered as section 209A(1) and section 273(b) as section 273(1)(b), but that formal change did not curtail the power to levy penalty. The penalty was therefore sustained and the question was answered for the Revenue.

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Issues: Whether the penalty imposed for failure to furnish an estimate of advance tax under section 273(b) of the Income-tax Act, 1961, was invalid because of the renumbering of the relevant provisions with effect from 1 June 1978 and because the assessment year was 1976-77.

Analysis: The relevant statutory obligation to furnish an estimate of advance tax and the consequences for default remained materially the same before and after the amendment that took effect from 1 June 1978. The change was only a regrouping and renumbering of provisions, with section 212(3) becoming section 209A(1) and section 273(b) becoming section 273(1)(b). For assessment year 1976-77, the applicable law was the law in force on 1 April 1976, or at any rate the law in force when the default was committed. The subsequent renumbering did not curtail the power to levy penalty for the default.

Conclusion: The penalty was validly imposed and sustained; the question referred was answered in favour of the Revenue and against the assessee.

Ratio Decidendi: A subsequent renumbering or regrouping of statutory provisions does not affect liability for penalty where the substantive obligation and penal consequence remain unchanged, and the law applicable is the law in force on the first day of the assessment year or at the time of default.

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