9911796707
TMI Blog2004 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... cted 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 1999-2000, the assessee opted for payment of tax by way of composition in respect of his agricultural land as provided under section 66 of the Act and paid a sum of Rs. 53,107 on July 31, 1999, on the premise that the extent of his holding was 48 acres 33 guntas. It is not in dispute that the assessee grows coffee in his land. For the subseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The controversy that is sought to be agitated in this writ petition is as to the conduct on the part of the respondent in calling upon the assessee to pay penalty/interest on this difference amount of Rs. 36,457 by invoking the provisions of section 42 of the Act. Sri Parthasarathy, learned counsel for the petitioner, submits that the respondent has no authority or jurisdiction to levy interest under section 42 of the Act in respect of a sum of Rs. 36,457 representing the difference between the amount that was actually payable by the assessee and the amount that had been actually paid 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lmost after one year and nine months after opting for payment by composition, the assessee was liable to pay the penalty as contemplated under section 42 of the Act and, therefore, there was every justification to levy and demand the penalty amount and the same cannot be quashed. The 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 as determined for the year 1999-2000 and had on such premise paid the amount of Rs. 53,107 on July 31, 1999, 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 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer should have passed an assessment order under section 19 of the Act. The assessee had opted for composition even in respect of the earlier 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 No. 23 with the provisions of section 18(1) it becomes obvious that the assessee is required to pay the compensation 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. 53,107 by or before July 31, 2000. On the other hand, the assessee actually paid a sum of Rs. 16,650 only on August 17, 2000, and has paid the balance of Rs. 36,457 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the operation of statutory provisions themselves. The amount demanded to be payable by the petitioner though it is called a penalty, if one looks at 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/int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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