1981 (3) TMI 128

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..... made by the ITO on the assessee on a toal income of Rs. 4,820 vide order dt. 29th Dec., 1973. Subsequently, the proceedings were initiated under s. 147(b), r/w s. 148 of the IT Act, 1961 and re-assessment was made on a total income of Rs. 59,223 resulting in a tax demand of Rs. 25,911. Since the tax paid by the assessee on her own estimate filed under s. 212 fell short of 75 per cent of the tax as .....

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..... there being no regular assessment within the meaning of s. 2(40) and the penalty proceedings having been initiated in course of the re-assessment proceedings in contradistinction to the regular assessment, no penalty can be validly imposed for default under s. 273(a) of the Act, 1961. The ITO did not feel persuaded by the reply of the assessee. On appeal, the AAC agreed with the assessee. 2. Aggr .....

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..... he regular assessment, is satisfied that any assessee has committed default envisaged by cl. (a) of s. 273. The ITO having initiated penalty proceedings under s. 273(a), r/w s. 274 in course of the re-assessment proceedings, cannot be said to have obtained satisfaction in course of proceedings pertaining to the regular assessment. The Allahabad High Court also interpreted s. 273 with regard to the .....

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