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TMI Blog1973 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment was made on May 23, 1962, and the tax of Rs. 2,27,307.84 as demanded was paid in time. Regular assessment was made on an income of Rs. 3,44,668 by order dated December 31, 1962, and the tax determined was Rs. 2,66,794. The assessee was given credit for Rs. 2,25,337, the amount paid under the provisional assessment, after some minor adjustments and the demand notice under section 156 of the Income-tax Act, 1961, was issued for Rs. 41,456. This amount was paid. While completing the assessment, the Income-tax Officer gave the following direction : " Also issue notice under section 28(1) for default of notice under section 22(1). Charge penal interest and also issue notice under section 18A(1)/ 28 for default of section 18A and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice can be taken of the default, if any, committed under section 22(1) ; (iv) by virtue of the assurances given on the floor of the House at the time of bringing on the statute book the provisions of section 22(1), no penalty could be imposed for default under section 22(1) ; (v) rate of penalty, i.e., 2 per cent. does not mean mere mathematical calculations, but it can also mean penalty from 0 per cent. to 2 per cent. ; (vi) to the extent there was a default under the old Act, the substantive provisions of the old Act are applicable and to that extent the quantum of penalty is governed by the old Act ; and (vii) the assessee was not without reasonable cause within the meaning of section 271(1)(a). The findings of the Tribunal on thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 256(1) of the Income-tax Act, 1961. The Tribunal has referred the following two questions of law for this court's opinion : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal has rightly refused to take notice of the assurances given on the floor of the House at the time of the enactment of section 28 of the Act of 1922 ? 2. Whether, on the facts and in the circumstances of the case, it has been rightly held by the Tribunal that there was a proper initiation of proceedings under section 271(1)(a) read with sections 274 and 275 of the Act of 1961 ? " The assessee died on December 1, 1972, and Rajinder Lal, Kuthiala (son), Ravinder Lal Kuthila (son), an Smt. Lila Devi (widow), have been brought on the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (2) of section 22 read as under : " (1) The Income-tax Officer shall, on or before the 1st day of May in each year, give notice, by publication in the press and by publication in the prescribed manner, requiring every person whose total income during the previous year exceeded the maximum amount which is not chargeable to income-tax to furnish, within such period not being less than sixty days as may be specified in the notice, a return, in the prescribed form and verified in the prescribed manner, setting forth (along with such other particulars as may be required by the notice) his total income and total world income during that year : Provided that the Income-tax Officer may in his discretion extend the date for the delivery of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any, payable by him, a sum not exceeding one and a half times that amount, and in the cases referred to. . . . ." A combined reading of sections 22(1) and 28, as amended, makes it clear that every person who had an assessable income had to file the return of his income within the period stated in the public notice issued under sub-section (1) of section 22 and, if he failed to do so, he incurred a penalty under section 28. It was open to the Income-tax Officer to issue individual notice to each assessee under sub-section (2) of section 22 requiring the assessee to file his return of income within a period of not less than thirty days and if the assessee to whom the notice was issued did not file the return within the time prescribed, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod, the alleged assurance given on the floor of the House that the practice of issuing individual notices to the assessees would be continued and no penalty would be levied if the return was not filed by an assessee within the time prescribed in the public notice cannot avail the assessee to avoid the penalty consequent on the default in filing the return between February 15, 1962, and May 7, 1962, in this case. The notice under section 34 to file the return was issued to the assessee and was served on him on November 30, 1961, in pursuance of which he asked for time up to March 15, 1962, to file his return. He was allowed time up to February 15, 1962, and he never asked for any further extension of time. By the said notice, it was brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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