TaxTMI 
TaxTMI 
1982 (3) TMI 43
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....(a)(i) of the Income-tax Act, 1961, against the assessee was to be quantified With reference to the gross tax as also reduced by self-assessment tax, if any, under section 140A of the Act, it being conceded by the Revenue at the time of the hearing of the appeals that the gross tax was to be reduced by the advance tax and the tax deducted at source ? " In view of the very limited controversy before us, we propose to summarise the relevant facts in so far as they pertained to that controversy. The assessment years are 1962-63 and 1963-64. The assessee failed to furnish returns of her income in accordance with the provisions of s. 139(1) of the said Act for the said two years. Notices under s. 139(2) of the said Act were served by the ITO ....
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....alty leviable was to be calculated at 2 per cent. of the net tax payable by the assessee in respect of the assessment year concerned, after taking into account or giving credit for the tax deducted at source, the advance tax paid as well as tax paid at self-assessment under s. 140A of the said Act. Whereas, according to the Revenue, although the tax deducted at source and advance tax had to be given credit for in computing the net tax payable, the assessee was not entitled to any credit in respect of the tax paid on self-assessment under s. 140A. The Tribunal accepted the contention of the assessee and reduced the amount of penalty and directed the ITO to determine the amount of penalty after calculating the amount and net tax payable by th....
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....se, in addition to the amount of the tax, if any, payable by him, a sum equal to two per cent. of the assessed tax for every month during which the default continued. Explanation.-In this clause 'assessed tax' means tax as reduced by the sum, if any, deducted at source under Chapter XVII-B or paid in advance under Chapter XVII-C ........" It may be mentioned that the aforesaid Explanation has been inserted by the D.T. (Amendment) Act, 1974, with retrospective effect in the said section. There is no doubt, and there can be none, that if the Explanation set out earlier is to be given effect to, the contention urged by the assessee before the Tribunal, and which the assessee's counsel, Mr. Khatri, has also pressed before us, must be r....
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....as not right in holding that penalty was not imposable. We may mention that this decision was rendered by the Punjab and Haryana High Court after taking into account the decision of the Supreme Court in CTO v. Sri Venkateswara Oil Mills [1973] 32 STC 660. Mr. Khatri, the learned counsel for the assessee, has, however, placed strong reliance on the decision of a Division Bench of the Allahabad High Court in Rampur Distillery & Chemical Works Ltd. v. C.I.T [1965] 55 ITR 338. In that case, the question related to the calculation of depreciation. While the reference was pending in the High Court, the Removal of Difficulties Order, 1949, was amended by the Taxation Laws (Merged States) (Removal of Difficulties) Amendment Order, 1962. Section ....