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TMI Blog1971 (7) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... n 22(1) of the Indian Income-tax Act, 1922, in respect of the different assessment years. On August 31, 1963, he made an order under section 271(1)(a) of the Income-tax Act, 1961, imposing a penalty of Rs. 2,209 on the ground that the assessee had not filed the returns of income in time. On appeal for the assessment year 1960-61, the Appellate Assistant Commissioner of Income-tax, although finding that the assessee was guilty of default in complying with the notice under section 22(1) of the Act of 1922, and that, therefore, section 271(1)(a) of the Act of 1961 was attracted, reduced the penalty to Rs. 1,800. The assessee proceeded in further appeal to the Income-tax Appellate Tribunal. The Appellate Tribunal also held that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also urged, in the alternative, that there is a discretion in the Income- tax Officer when he exercises the power under section 274(1)(i) to impose or not to impose a penalty for default in filing the return within time, and if that discretion is available to him it cannot be said that he cannot reduce the amount of penalty below the level mentioned in section 271(1)(i). In our opinion, neither of the contentions urged on behalf of the assessee is well-founded. It seems to us that the Tribunal, while disposing of an appeal in a case arising out of a penalty proceeding under section 271(1) has the same limits set to its jurisdiction as govern the jurisdiction of the Income- tax Officer. There can be no dispute that the jurisdiction exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it does must be done in consonance with sound judicial principle and in accordance with well-accepted doctrines applicable to judicial bodies. One of those principles is the general principle to which we have already alluded. Therefore, in our opinion, the jurisdiction of the Tribunal " to pass such orders thereon as it thinks fit " in respect of an appeal before it must be orders within limits which we can discover by reference to the jurisdiction of the authority whose order has given rise to the appeal. Ordinarily that would be the Appellate Assistant Commissioner of Income-tax, but it is not disputed that for the purposes of the present case, if this general principle applies, we must go down to the order of the Income-tax Officer. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learly laid down. To our mind, it is not variable. If that is so for the Income-tax Officer, then equally it is so for the Tribunal. If Parliament had at all intended to vest a power in the Tribunal to reduce or waive the penalty it would have clearly and expressly done so. It has done so in the case of the Commissioner of Income-tax by enacting section 271(4A). We may with advantage refer to the observations of the Calcutta High Court in Commissioner of Income-tax v. A. K. Das , in a case of penalty under section 271(1)(iii) of the Act. The learned judges observed : " The expression 'such orders as it thinks fit ' (under section 251) cannot mean an order against the statutory mandate imposing limits of penalty under section 271(1)(iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat provision. The only limit is that the total quantum of penalty computed at the rate of 2% must not exceed in the aggregate 50% of the tax. On the contrary, in sub-clauses (ii) and (iii) the statute has specified a minimum limit and a maximum limit. Consequently, it refers to " a sum which, shall not be less than .... but which shall not exceed . ... " as the basis for determining the quantum of penalty. The Tribunal has observed that the rate of 2% mentioned in sub-clause (i) is not a uniform rate but is the maximum rate up to which the Income-tax Officer can impose a penalty in a case falling under section 271(1)(a). Upon the considerations which have found favour with us this conclusion cannot be accepted at all. It might have been po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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