1994 (9) TMI 9 - HC - Income Tax

Summary

Issues: Challenge to imposition of penalty under section 17A(3) of the Kerala Agricultural Income-tax Act, 1950 for non-payment of tax due for the assessment year 1981-82.

Analysis:
The judgment of the High Court of Kerala, delivered by Judge T. L. VISWANATHA IYER, addressed the challenge in a writ petition against the imposition of a penalty under section 17A(3) of the Kerala Agricultural Income-tax Act, 1950. The penalty was imposed for non-payment of tax due for the assessment year 1981-82 along with the return. The court noted that the admitted tax liability of Rs. 1,05,983 was paid before the return was filed, albeit after the due date of June 1, 1981. The assessing authority imposed a penalty of Rs. 21,197 under section 17A(3) for the delayed payment. The petitioner contended that the penalty should only apply if there was a default in payment before or along with the return, not merely a delay in payment before the due date. The court referred to previous decisions and held that the penalty under section 17A(3) is triggered by non-payment of tax before or along with the return, not non-payment on the due date for filing the return.

The court referenced two bench decisions that supported the interpretation that the penalty under section 17A(3) is applicable for non-payment of tax admitted to be due before or along with the return, not for non-payment on the due date for filing the return. The court emphasized that the language of the provision does not support levying a penalty for default in payment on the due date but for default before or along with the return. The court clarified that the calculation of the penalty should be based on the actual date of filing the return, not the due date for filing. Therefore, the court agreed with the previous decisions and upheld the ruling of the learned single judge, dismissing the writ appeal.

In conclusion, the High Court of Kerala, through Judge T. L. VISWANATHA IYER, affirmed that the penalty under section 17A(3) of the Kerala Agricultural Income-tax Act, 1950 is applicable for non-payment of tax admitted to be due before or along with the return, not for non-payment on the due date for filing the return. The court's decision was based on the interpretation of the language of the provision and previous bench decisions, leading to the dismissal of the writ appeal challenging the imposition of the penalty.