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TMI Blog1989 (9) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... y under section 17A(3) for the default in payment of admitted tax for the period from June 1, 1981, to February 28, 1987, at the rate of 2 per cent. (per month) on Rs. 94,275.50." Facts relevant and requisite to dispose of the dispute arising for consideration lie in a narrow compass. The return for the assessment year was filed on December 4, 1986. The admitted tax was paid on February 28, 1987. The period of default in paying the admitted tax before, filing the return as contemplated under sub-section (1) of section 17A for the putpose of levying penalty under sub-section (3), therefore, will be only from December 4, 1986, to February 28, 1987, learned counsel for the petitioner submits. The penalty, under sub-section (3), however, can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person made mention of in section 17 thus, let us consider the intention of the Legislature in enacting section 17A. I shall now read these sub-sections. "17A. Self-assessment.--(1) Every person liable to furnish a return under section 17 or section 35 shall pay, before furnishing the return, the amount of tax on the total agricultural income admitted in the return, and the return shall be accompanied by proof of payment of such tax. . . (3) If any person fails to pay the tax or any part thereof in accord.ance with the provisions of sub-section (1), the assessing authority may direct that a sum equal to two per cent. of such tax or part Thereof, as the case may be, shall be recovered from him by way of penalty for every month during w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty. That means it is open to the assessing authority to levy penalty or not at all. It is also clear from the pain language employed in this sub-section that the penalty can be levied only if the person commits default in paying the tax in terms of sub-section (1). Sub-section (1) will be attracted only if a person furnishes the return have already seen that it is not mandatory for an assessee to furnish the return. But if he decides to furnish the return, the return shall be accompanied by proof of payment of the tax on the basis of self-assessment. This, in short, is the scheme of section 17A. Going by the scheme, the person made mention of in sub-section (1) can be said to have committed the default in paying the tax only from the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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