9911796707
TMI Blog1960 (2) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... tion ? The facts out of which this question has arisen are these. For the assessment years 1948-49, 1949-50 and 1950-51 Gursahai Saigal neither sent to the Income-tax Officer an estimate of the advance tax payable by him nor paid any advance tax as contemplated in section 18A(3) of the Indian Income-tax Act. The Income-tax Officer on making the regular assessment for these years added interest to the tax after calculating the interest in the manner laid down in sub-section (6) of this section. The assessee's appeals were dismissed by the Appellate Assistant Commissioner. On further appeals the Appellate Tribunal (Delhi Bench) held that the assessee was not liable to pay interest under section 18A(8) of the Income-tax Act. Thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less than 80 per cent. of the amount determined in regular proceedings, then the assessee is liable to pay interest on the amount of the shortfall (sub-section (6)). He is also liable to pay interest if he has not paid advance tax in accordance with the previous provisions (sub-section (8)). If the Income-tax Officer is satisfied that the assessee had knowingly and deliberately sent incorrect estimate of the advance tax payable, or that the new assessee has without reasonable cause failed to comply with the provisions of sub-section (3), then in either case the assessee is liable to pay penalty under section 28 of the Income-tax Act with certain limitations with which we are not concerned in the present case. It is, however, common ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er should, however, satisfy himself that the failure was without any reasonable cause. Without this finding action under sub-section (9)(b) cannot be taken. Action under sub-section (8) has to be taken even if failure to pay advance tax is due to accident or miscalculation or can be justified on any other ground. It follows that when advance tax is not paid, then the assessee is liable both under sub-section (8) and sub-section (9), subject to certain conditions. There is, however, nothing unreasonable in this situation. If the tax is not paid because of miscalculation, etc., then a lighter penalty of charge of interest is imposed but if it is not paid without reasonable cause, then heavier penalty is imposed. It is always open to the Legis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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