2003 (5) TMI 16

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....income in the year under consideration from salary, share profit from M/s. Pratap Steels and dividend. He declared his total income at Rs. 9,32,161 and the assessment was completed on a total income of Rs. 9,73,320. As the assessee has not made any compulsory deposit as required under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, the Assessing Officer has initiated penalty proceedings under section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974. After considering the explanation, he levied the penalty of Rs. 40,565 which is 20 per cent, of the amount requisite under the Act, 1974, which was required to be made by the assessee. In appeal, the Commissioner of Income-tax (Appeals) has confirmed the penalty ....

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....dated December 19, 1986, passed by the Inspecting Assistant Commissioner (Assessment) under section 273(2), it was accepted that the assessee had filed an estimate in lieu of that statement under section 209A(2) estimating his current income at 'nil'. This being the position the 'current income' of the assessee in terms of section 4(3)(b) would also be 'nil' and, therefore, in terms of section 4(1) of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 there were no liability on the part of the assessee to make a compulsory deposit. Section 10 which prescribes the penalty for failure to make a compulsory deposit opens with the words 'if in relation to an assessment year any person who is liable to make a compulsory deposit', has wit....