9911796707
TMI Blog2004 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... tted time. The amount so payable is also statutorily determined and is not left to the discretion of the authority demanding payment. - Therefore I am of the view that the provisions of section 42 are attracted and there is nothing wrong on the part of the respondent in demanding the assessee to make payment of penalty/interest under this provision and in raising the demand - - - - - Dated:- 16-2-2004 - Judge(s) : D. V. SHYLENDRA KUMAR. JUDGMENT D.V. SHYLENDRA KUMAR J. - The petitioner is an assessee under the provisions of the Karnataka Agricultural Income-tax Act, 1957. For the assessment year 2000-01, the assessee had opted for payment of tax by composition in respect of his agricultural land as provided under section 66 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be agitated in this writ petition is as to the justification on the part of the respondent in calling upon the assessee to pay penalty on Rs. 33,706 which had been paid on August 20, 2002, by invoking the provisions of section 42 of the Act. Sri Parthasarathi, learned counsel for the petitioner submits that the respondent had no authority or jurisdiction to levy penalty under section 42 of the Act in respect of a sum of Rs. 33,706 which was paid on August 20, 2002, which was actually payable by the assessee for the year 2000-01. The submission of learned counsel for the petitioner is that section 42 is a provision for recovery of the arrears of tax when the assessee becomes a defaulter in payment of tax or any other amount due under the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 42 of the Act and therefore there was every justification to levy and demand the penalty amount and the same cannot be quashed. Learned Government Pleader has also pointed out that the petitioner in fact having opted for composition by accepting the holding to be 48 acres 33 guntas for the year 1999-2000 and had on such premise paid the amount of Rs. 21,088 on July 31, 2000, and that such determination holds good for the subsequent two years also unless by a proper procedure and order it has been redetermined. It is submitted that as in the instant case the petitioner has ultimately accepted and admitted his liability for the payment of this amount of Rs. 54,794 and having without any demur paid the difference amount of Rs. 33,706 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years and the amount of tax payable on composition had already been determined. By a reading of the provisions of section 66 read with rule 32(2) and Form F No. 23 with provisions of section 18(1) it become obvious that the assessee is required to pay the composition amount by or before July 31 of the year in respect of which he had opted for composition. In the present case, the assessee was required to make payment of Rs. 54,792 by or before July 31, 2000. On the other hand, the assessee actually paid a sum of Rs. 21,088 only on July 31, 2000, and has paid the balance of Rs. 33,706 on August 10, 2000. To this extent there is definitely non-compliance. A reading of the provision of section 66 shows that it automatically implies that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scheme of the provisions of section 42 of the Act it is obvious that the amount is in the nature of a compensatory payment to compensate the revenue for the loss due to the delayed remittance of a tax liability quantified and indicated to be payable within a permitted time. The amount so payable is also statutorily determined and is not left to the discretion of the authority demanding payment. Therefore I am of the view that the provisions of section 42 are attracted and there is nothing wrong on the part of the respondent in demanding the assessee to make payment of penalty/interest under this provision and in raising the demand as per annexure E. The contentions urged on behalf of the petitioner are accordingly rejected. The writ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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