1972 (11) TMI 4 - HC - Income Tax

Delay in filing return - levy of interest and penalty - petitioner challenges the orders of the Income-tax Officer levying penalty under section 271(1) held that provision for levy of penalty as well as interest for delayed filing of return cannot be said to be offending any constitutional provision

Summary

Issues: Challenge to penalty orders under section 271(1) of the Income-tax Act for delayed submission of returns, violation of article 14 of the Constitution, contention on double penalty for the same default, interpretation of section 271(1)(a)(i), filing of appeals before appellate authorities, permission to raise additional grounds at a later stage.

Analysis:
The petitioner challenged the penalty orders imposed by the Income-tax Officer under section 271(1) for delays in submitting returns for the assessment years 1960-61, 1961-62, and 1962-63. Initially, the petitioner argued that the penalty imposition violated article 14 of the Constitution and amounted to a double penalty for the same default. However, the court noted that the Supreme Court had previously ruled against such contentions in Jain Brothers v. Union of India. Consequently, both arguments were dismissed. The court emphasized that statutory provisions for penalties and interest on delayed returns do not contravene any constitutional provisions.

The petitioner later sought to raise additional grounds related to the interpretation of section 271(1)(a)(i) to challenge the quantum of penalty imposed. The court clarified that if the challenge primarily concerned the penalty amount, the appropriate forum would be the appellate authorities under the Income-tax Act. As the petitioner had not pursued appeals before these authorities for all assessment years, the court advised the petitioner to file appeals along with requests to excuse the delay. The court refused permission to raise additional grounds at that stage, dismissing the writ petitions and the requests to raise additional grounds.

While dismissing the petitions, the court allowed the petitioner to approach the Appellate Assistant Commissioner for the assessment years 1960-61 and 1961-62, and the Tribunal for the year 1962-63 by filing appeals with requests to excuse the delay. The court expressed confidence that the appellate authorities would consider the petitioner's efforts before the Central Board of Revenue and the court while deciding on any delay-excusing petitions.