1975 (11) TMI 38

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....ember, 1966. On the basis of its return the assessee should have deposited a sum of Rs. 93,105 as tax under section 140A(3) of the Income-tax Act, 1961, by the 27th October, 1966. Instead of depositing the said amount the assessee wrote a letter to the Income-tax Officer on the 3rd November, 1966, requesting the Income-tax Officer to adjust the advance tax paid amounting to Rs. 65,826 from the total amount of tax due. The officer was also informed that the assessee had difficulties in the matter of depositing the tax within time on account of the number of intervening holidays and also on account of the fact that the funds of the assessee had been depleted on account of payment of bonus to its staff and workers. The assessee sought permissi....

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.... behalf of the revenue that the Appellate Assistant commissioner was not correct in cancelling the penalty inasmuch as the word used in sub-section (1) of section 140A of the Income-tax Act, 1961 is " shall ". It was contended that the provisions of this section were mandatory, and there was no option left to the Income-tax Officer but to to levy a penalty in a case of self-assessment where tax remained outstanding beyond 30 days. It was submitted that if after the expiry of 30 days tax on the basis of voluntary assessment remained unpaid there was no ocassion for extension of time and the Income-tax Officer entitled to levy the penalty. The quantum of the penalty was also sought to be justified on the ground that there was there was no pro....

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....fter a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards the provisional assessment or regular assessment, as the case may be. (3) If any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), he shall, unless a provisional assessment under section 141 or at regular assessment under section 143 or section 144 has been made before the expiry of the thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the Income-tax Officer may direct, so however, that the amount of penalty does not exceed fifty per cent. of....