1955 (9) TMI 82

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....i, Adv. JUDGMENT M.C. Chagla, J. 1. The short question as to the competency of an appeal arises in this reference. The Income Tax Officer came to the conclusion that the assessee had furnished an estimate of his income for the purpose of advance payment of lax which was false to his knowledge & he imposed a penalty upon him. The assessee appealed to the Appellate Asst. Commissioner, the a....

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....him which he knew or had reason to believe to be untrue. If the Income Tax Officer is satisfied, then the latter part of the section introduces a legal fiction, and we will restrict ourselves to the provisions of Section 18A (9) (a) with which we are concerned & the legal fiction introduced is that the assessee shall be deemed to have deliberately furnished inaccurate particulars of his income,....

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....e power to impose a penalty under Section 28, cuts down the quantum of the penalty by making the penalty much less in a case falling under Section 18A(9). It is clear, in our opinion, that the Legislature deliberately used this draftsmanship in order to avoid the necessity of amending Section 30. If the power of imposing a penalty had been conferred upon the Income Tax Officer by Section 18A(9)....

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....erence to Section 47 which provides for recovery of penalties and there is no provision for recovery of penalty imposed under Section 18A(9). If the contention of the Commissioner were to be accepted, then the assessee would be in the happy position of not having to pay the penalty at all because there is no provision in law of recovering the penalty. The reason why Section 18A (9) is not menti....