TaxTMI 
TaxTMI 
1993 (10) TMI 71
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....judication by this court : "Whether, on the facts and in the circumstances of the case and in view of the provisions of section 271(2), penalty is to be calculated treating the firm as an unregistered firm when the assessee-firm committed default in submission of returns and rendered itself liable for penalty under section 271(1)(a)?" In our view the question referred needs a slight modification, and accordingly we reframe the same for adjudication. The reframed question reads as follows: "Whether penalty can be levied under section 271(1)(a) of the Income-tax Act, 1961, on a registered firm by treating it as an unregistered firm in terms of section 271(2) of the Act when no tax is payable by the registered firm after giving credit to ad....
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....d be rendered nugatory if the plea is accepted. The Tribunal noticed that the decision in Ganesh Dass case [1988] 169 ITR 221 (SC) related to levy of interest under section 139(8) of the Act, but its ratio was relevant. Reliance was also placed on a decision of the Rajasthan High Court in CIT v. Builders Engineers Co. [1989] 175 ITR 317. It was held that where advance tax paid covers the entire amount of assessed tax, penalty under section 271(1)(a) is not leviable. Accordingly, the orders imposing penalty were set aside, and the matter was remitted back to the file of the Income-tax Officer to make fresh adjudication in the light of the observations made. This direction was given keeping in view the assessee's specific claim that the tax d....
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....e or waive the interest payable by any person under any provision of this section." "271. Failure to furnish returns, comply with notices, concealment of income, etc.-(1) If the Income-tax Officer or the Appellate Assistant Commissioner, in the course of any proceedings under this Act, is satisfied that any person (a) has without reasonable cause failed to furnish the return of total income which he was required to furnish under sub-section (1) of section 139 or by notice given under sub-section (2) of section 139 or section 148 or has without reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section (1) of section 139 or by such notice, as the case may be, or (b) has without reasonable cause ....
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.... earning any income included in the total income but which has been disallowed as a deduction), such person shall, unless he proves that the failure to return the correct income did not arise from any fraud or any gross or wilful neglect on his part, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income for the purposes of clause (c) of this sub-section. " The apex court in relation to levy of interest under section 139(8) in Ganesh Dass case [1988] 169 ITR 221, observed as follows (at page 230) : "Before we part with these appeals, we think we should clarify one situation, namely, where the advance tax duly paid covers the entire amount of tax assessed, there is no question of chargi....