1993 (7) TMI 55

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.... then ? (2) Whether the Appellate Tribunal erred in law in deleting the penalty imposed under section 273(c) of the Income-tax Act, 1961 ?" This reference pertains to the assessment year 1970-71. The assessee was maintaining its accounts according to the Samvat year and Samvat year 2025 relevant to the assessment year 1970-71 ended on November 9, 1969. The assessee was, therefore, under an obligation to furnish an estimate of its income and advance tax under section 212(3A) by December 15, 1969. The assessee had earlier, pursuant to an order issued under section 210, paid Rs. 10,880 by way of advance tax. The total income returned by the assessee was Rs. 1,52,663 and the tax payable thereon worked out to Rs. 24,600 and on the basis of the....

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....book only from April 1, 1970, and hence on the date when the offence was committed, there was no provision for any penalty. We, therefore, accept Shri Desai's contention that the penalty could not be imposed under section 273(c) for default committed on March 15, 1970. We allow the appeal on this ground and hence we do not deal with the aspect of the reasonable cause." Following that decision, the Tribunal allowed the appeal and deleted the penalty. What is urged by learned counsel for the Revenue is that the Tribunal overlooked the provisions of section 273 and decided the appeal on the general principle that penalty cannot be imposed for a default committed when the said default did not amount to any offence. The relevant part of sectio....

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....ad come into existence on April 1, 1969. The default contemplated by section 212(3A), if made without reason able cause, was made liable to penalty by section 273 which was made effective from April 1, 1970. The Legislature in terms provided that if the Income-tax Officer in the course of regular assessment for the assessment year commencing on April 1, 1970, is satisfied that any assessee has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3A) of section 212, then he may direct that such person shall, in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum specified by that section. Though the provision with respect to i....