9911796707
TMI Blog1983 (9) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... of the decision of the Income-tax Appellate Tribunal came to Rs. 6,66,279 out of which Rs. 4,65,700 was held to be income accrued and received at Bombay and the balance of Rs. 2,00,569 was held to be income accrued and received in Daman. It may be mentioned that a reference was sought by the Commissioner from the decision of the Tribunal in quantum appeal and this reference being I.T. Reference No. 178 of 1973 was disposed of by a Division Bench of this court on June 16, 1982 (Addl. CIT v. Mustakhusein Gulamhusein Ghiya [1983] 143 ITR 951). As the assessee had not filed a return of income under s. 139(1), the ITO initiated proceedings under s. 274 of the I.T. Act and imposed on the assessee a penalty of Rs. 3,43,140. The assessee carried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h restriction to be found in para. 17. The Tribunal, therefore, held that the assessee was entitled to the relaxation contemplated in para. 17 of the Taxation Concessions Order and that it was a suitable case where the relaxation ought to be invoked. The Tribunal accordingly reduced the penalty to Rs. 1,000. At the instance of the Addl. Commissioner, the following three questions stand referred to us. "(1) Whether, on the facts and in the circumstances of the case, the assessee was one of the persons described in para. 3 of sub-para. (1), clause (i), sub-clause (a) as well as clause (ii) of the Dadar and Nagar Haveli and Goa, Daman and Diu (Taxation Concessions) Order, 1964? (2) Whether, on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee included in his total income as accrues or arises in the Union territory or outside India and is not deemed to accrue or arise or is not received or is not deemed to be received in any part of India other than the Union territory. However, even if we find these express words of limitation in clause (ii), is there any warranty for reading them in the provisions contained in para. 17 of the Concessions Order ? Para. 17 pertains to relaxation of provisions relating to imposition of penalties under the I.T. Act, 1961. It is a short para. and the entire para. may accordingly be set down: " 17. Relaxation of provisions relating to imposition of penalties under the Income-tax Act, 1961 : -Notwithstanding anything contained in Chapter XXI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after 1st April, 1967. As we are concerned with the assessment year 1963-64 and as we have opined that the assessee was one of the persons fully covered by cl. (ii) of sub-para. (1) of para. 3, the relaxation was available. We find in para. 17 no other words of qualification, restriction or limitation on the amount of penalty which could be levied. Mr. Joshi has strenuously contended that the relaxation contemplated in para. 17 should only be available on the penalty which could be calculated on the income which had been earned by or accrued to the assessee in the erstwhile Portuguese territory and not in the penalty quantum on the income which had accrued to the assessee in India. He submitted that the intention of the Legislature was cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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