1980 (12) TMI 66

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.... 2. A notice under s. 148 was issued which was served upon the assessee on 2nd June, 1976. The assessee was required to file the return of income on 1st July, 1976 but he filed the return only on 7th March, 1977. Therefore, for this delay in furnishing the return the assessee was called upon to show cause as to why penalty should not be levied on him under s. 271(1)(a) of the IT Act. The assesse....

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....ty for late filing of the return. The assessee explained that he had paid a far greater amount by way of advance tax than was found due under reassessment following the issue of notice under s. 148. He had paid a sum of Rs. 37,744 by way of advance tax. The original assessment led to the imposition of a tax of Rs. 30,863. As a result of reassessment proceedings the tax payable was increased to Rs.....

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....of penalty. The penalty imposed was, therefore, cancelled. 3. It is against this cancellation Revenue has come up in appeal before us and submits that to find out whether any penalty is to be levied under s. 271(1)(a) one has to determine, if any, amount of tax is payable by him and if any amount of tax is payable by him than the penalty is to be worked out equal to 2 per cent of the assessed t....

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....unt should be taken of the assessed tax. The assessee had paid a sum of Rs. 37,744 by way of advance tax. After the assessment under s. 148 he was found liable for an amount of Rs. 33,450 as tax. According to the explanation assessed tax means tax as reduced by the sum. If any deducted at source under Chap. XVII-B or paid in Chap. XVII-C. Looked at from this angle there is no assessed tax with ref....