1944 (2) TMI 21 - HC - Income Tax

Summary

Issues:
1. Application for mandamus under Section 66(2) of the Income-tax Act.
2. Penalty imposed on the assessee under Section 28 of the Income-tax Act.
3. Questions of law raised in the petition.

Analysis:
1. The application was made under Section 66(2) of the Income-tax Act for a mandamus to the Appellate Tribunal to state a case arising from a penalty imposed on the assessee under Section 28 of the Income-tax Act for the assessment year 1940-41. The petitioner sought to challenge the penalty imposed by the Income-tax Officer, which was confirmed by the Assistant Commissioner and upheld by the Income-tax Tribunal.

2. The penalty imposed on the assessee was challenged on various grounds. The questions of law raised in the petition included:
- Legality of fixing the previous year for assessment.
- Justification of penalty action in the circumstances of the case.
- Validity of penalty action based on an allegedly defective notice.
- Approval of penalty by the Inspecting Assistant Commissioner without giving the assessee an opportunity to show cause.

3. Regarding the questions raised:
- The objection related to the fixation of the previous year for assessment was abandoned as it was deemed irrelevant to the penalty issue.
- The justification for penalty action was considered a factual matter rather than a legal one, leading to the rejection of this ground for challenge.
- The objection about the defective notice not being raised at the appropriate stages of appeal led to its dismissal as it could not be re-agitated.
- The interpretation of Section 28(6) of the Income-tax Act was crucial in determining whether the Inspecting Assistant Commissioner needed to provide a separate hearing to the assessee before approving the penalty. The court held that the requirement for a hearing was fulfilled by the Income-tax Officer, and no additional hearing by the Inspecting Assistant Commissioner was mandated.

In conclusion, the High Court dismissed the petition, stating that no question of law arose under Section 66(2) of the Income-tax Act for a case to be stated. The decision of the Appellate Tribunal was upheld, and the petition was dismissed with costs.