9911796707
TMI Blog1990 (3) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... s actually filed on10-2-1983and was late by 19 completed months. The Income-tax Officer initiated proceedings for late submission of return. The assessee did not file any reply to the penalty notice issued. A fresh show-cause notice was served on the assessee on24-1-1986fixing up the penalty matter for hearing on12-2-1986. The assessee did not file any reply nor was any appearance put in before the Income-tax Officer. The Income-tax Officer gave yet another opportunity for hearing on10-3-1986. Still the assessee did not file any reply. The Income-tax Officer, therefore, imposed a penalty of Rs. 8,290 on total income without giving effect to the provisions of sections 11 and 12 of the Income-tax Act. The assessee went in appeal before the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) of section 139 shall be imposed under sub-section (1) on an assessee whose total income does not exceed the maximum amount not chargeable to tax in his case by one thousand five hundred rupees; " It was submitted by Shri Aggarwal that the total income of the assessee for assessment year 1981-82 had been computed at a loss of Rs. 8,681. The submission was that as the assessee's total income did not exceed the maximum amount not chargeable to tax in its case by Rs. 1,500, no penalty for failure to furnish the return of total income under section 139(1) could be imposed. We have heard the Departmental Representative and carefully gone through the provisions of section 271. We find that proviso to section 271(3) stipulates that noth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn and for concealment of income shall not exceed in the aggregate twice the amount of the tax sought to be evaded. It was submitted that this clause will create an anomalous situation in the case of an assessee like the present one where penalty for late submission of the return was imposed. Elaborating the argument it was submitted that where both the penalties, namely, for late submission of return and for concealment of income, were imposed the maximum penalty would not exceed twice the amount of tax sought to be evaded. In the case of a trust like the assessee where the tax sought to be evaded was NIL the penalty in such a case would be NIL, but if only one penalty, namely, penalty for late submission of return was to be levied, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee had been filing returns in the past and for the year under consideration only one penalty for late submission of return had been initiated and imposed. In our view clause (d) of sub-section (3) of section 271 was not applicable at all and the assessee's submission in this regard was not sustainable. 7. The next point made by the learned counsel for the assessee was that since the income of the assessee was below the taxable limit the assessee was advised by the counsel not to file the return and that when the new auditors were appointed, they advised the assessee to file the return and so the return was filed. Reliance was also placed on the decision of the Supreme Court in the case of Concord of India Insurance Co. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned counsel for the assessee was that this was the case of a charitable trust and equity demanded that charitable trust should not be penalised for late submission of the returns. 9. We have given our careful consideration to the submission of the learned counsel. It will be well to recall the words of Rowlatt, J. in Cape Brandy Syndicate v. IRC [1921] 1 KB 64 (KB) at page 71, that : "... in a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. " The above passage has been approved by the Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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