9911796707
TMI Blog1982 (12) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... e returns of income for each of the years under reference, the ITO imposed penalty under s. 271(1)(a) of the Act, vide his orders both dated 16th November, 1967. The ITO worked out the quantum of penalty on the basis of the assessed tax payable by the assessee as a registered firm. Against the said orders of the ITO, the assessee preferred appeals before the AAC. Pending the said appeals, the ITO noticed that the quantum of penalty worked out by him was not in accordance with the provisions of s. 271(2) of the Act. Inasmuch as he had worked out the quantum of penalty on the basis of the assessed tax payable by the assessee as a registered firm instead of treating it as an unregistered firm for this , limited purpose, he, therefore, enquired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings were bad in law, and (iii) the AAC by his order dated 7th March, 1968, had processed the assessee's case by observing that the quantum of penalty imposed was as per the provisions of the Act and cannot, therefore, be considered excessive. Overruling the contention of the assessee, the AAC upheld the action of the ITO. Being aggrieved by the order of the AAC, the assessee came up in appeal before the Tribunal. At the outset, the learned representative for the assessee very fairly stated that he cannot possibly dispute the application of the provisions of s. 271(2) of the Act. He, however, submitted that since the ITO had not issued notices in writing as contemplated under s. 154(3) of the Act, nor did he verbally inform the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we do not find any substance in the appeals preferred by the assessee. We entirely agree with the submissions made on behalf of the Revenue that once the assessee concedes that the provisions of section 271(2) of the Act are applicable in the case, the assessee cannot challenge the proceedings initiated by the Income-tax Officer under section 154 of the Act merely on the ground that the show cause notice was not issued to it intimating the proposed rectification. On a plain reading of the provisions of section 154(3) of the Act, we entirely agree with the submissions made on behalf of the Revenue that since no statutory notice is prescribed under the statute, it would be sufficient if the assessee is made aware of the fact of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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