9911796707
TMI Blog1995 (1) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act, 1961. The assessee is an individual with previous year ending on 31-3-1984 relevant to the assessment year 1984-85. It filed an estimate of advance tax in a sum of Rs. 18,518 on 30-3-1984 and paid the tax thereon. The filing of the estimate and payment of tax was not in accordance with the due date for payment of instalments of advance tax, though it was within the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and also the meaning of the assessed tax as given in section 215(5) of the Income-tax Act, 1961. According to these provisions, the assessed tax would be only Rs. 47,683 even if the surcharge is taken into account and 10% of 75% of the same will come to only Rs. 3,576. Therefore, the levy of minimum penalty in a sum of Rs. 6,700 is very excessive. 4. The learned departmental represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x as the tax determined on the basis of regular assessment as reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, 194A, 194C, 194D and 195 of the Income-tax Act, so far as such tax relates to income subject to advance tax and so far as it is not due to variation in the rate of tax made by the Finance Act enacted for the year for which the regular asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not be less than ten per cent but shall not exceed one and a half times of seventy-five per cent of the assessed tax as defined in sub-section (5) of section 215'. In our considered view there is ambiguity in the language. It could mean 10% of the assessed tax or it could mean 10% of 75% of assessed tax. In view of the ambiguity in the provision, we interpret the provision in favour of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
