9911796707
TMI Blog1999 (11) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... return, self-assessment tax is not payable. However, the Assessing Officer was of the opinion that the assessee avoided payment of self-assessment tax by not taking into consideration the provisions of section 80VVA of the Income-tax Act. Admittedly, the gross income of the assessee before set off of unabsorbed investment allowance of earlier years is ₹ 3,17,679. Section 80VVA was introduced by Finance Act, 1983 and was operative from the assessment year 1984-85 onwards. As per the said section, the assessee-company is not entitled to claim set off of the unabsorbed depreciation fully. The set off of unabsorbed depreciation can be limited to 70% of the gross income of the assessee. In the instant case, the assessee is entitled to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the assessee submitted that on a plain reading of section 140A(1) of the Income-tax Act, tax is payable on the returned income and not on the income that might have been correctly shown or that might have been arrived at by the Assessing Officer after making certain adjustments as per law. He, therefore, pleaded that in the absence of any tax payable on the basis of the return filed, there is no obligation on the part of the assessee to pay self-assessment tax and consequently, penalty is not leviable under section 140A(3) of the Income-tax Act. He further contended that the return was filed overlooking the provisions of section 80VVA of the Act and since it was a bona fide mistake, penalty is not exigible merely for technical default ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessment tax, he claims a particular deduction, which he is not entitled to, and reduces the income to ₹ 10,000 on which no tax is payable. Whereas in another case, the honest assessee, who correctly files the return by showing an income of ₹ 1 lakh but in the absence of payment of self-assessment tax, provisions of section 140A(3) gets attracted. In our opinion, the correct interpretation that requires to be placed on the language used in section 140A(1) of the Act is that of the tax payable as per the income required to be returned by the assessee. In the instant case, the returned income clearly indicates, without any doubt, that the provisions of section 80VVA was not taken into consideration by the assessee. Such being t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, though for different reasons. Section 140A(3) as it existed before 1-4-1989 reads as under : - If an assessee fails to pay the tax on any part thereof in accordance with the provisions of sub-section (1), he shall, unless a regular assessment under section 143 or section 144 has been made before the expiry of the thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the Income-tax Officer may direct, and in the case of a continuing failure, such further amount or amounts as the Income-tax Officer may, from time to time, direct, so, however, that the total amount of penalty does not exceed fifty per cent, of the amount of such tax or part, as the case may be : Provided that before levy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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