1983 (8) TMI 131

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....essee and, accordingly, a notice under section 148 of the Income-tax Act, 1961 ('the Act') was issued to him, in response to which he filed a return on 6-10-1977. The ITO, therefore, initiated penalty proceedings under section 271(1)(a) of the Act, in response to which the assessee's contention was that the delay should be calculated after the service of the notice under section 148. The ITO, howe....

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....ault on its part. The assessed tax with reference to which penalty under section 271(1)(a) had to be worked out was nil and, hence, no penalty could be levied in the present case. In support of this contention it has been argued that the assessed tax on the assessee-firm was only Rs. 5,787, which as a result of our appellate order of date, would further stand reduced. According to the ITO himself,....

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....and levied penalty at Rs. 9,777, being 50 per cent of the assessed tax at Rs. 19,555. On appeal, the assessee contended that its status has been wrongly determined as an unregistered firm and the Tribunal had already directed grant of registration, in which status the tax payable was only Rs. 1,670, whereas it had paid advance tax of Rs. 1,855. Therefore, it was not liable to pay any tax and, cons....