1971 (7) TMI 40 - HC - Income Tax

Whether the penalties levied on the assessee under section 273(b) of the Act of 1961 for the assessment years 1958-59 and 1959-60 were rightly cancelled held that Section 297(2)(g) of the Act of 1961 is applicable to the case of a default under section 18A of the Act of 1922 and that being so, section 273 of the Act of 1961 is attracted therefore, question is answered in negative

Summary

The Income-tax Appellate Tribunal referred a question to the High Court regarding the cancellation of penalties under section 273(b) of the Income-tax Act of 1961 for the assessment years 1958-59 and 1959-60. The Tribunal allowed the appeals based on the ground that section 273 of the 1961 Act was not applicable to defaults under the repealed Act of 1922. However, the High Court held that section 297(2)(g) of the 1961 Act applies to defaults under the 1922 Act, making section 273 applicable. The High Court answered the question in the negative. The Tribunal may need to address additional arguments raised by the assessee in future proceedings. No costs were awarded, and counsel's fee was assessed at Rs. 200.