9911796707
TMI Blog1982 (7) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... 273 of the Income-tax Act, 1961, and in that view holding that the proceedings under section 273 of the said Act had not been validly initiated ? 2. If the answer to question No. 1 is in the affirmative, whether, on the facts and in the circumstances of the case, the penalty under section 273(b) of the Income-tax Act, 1961, could be imposed on the assessee ?" The respondent (hereinafter referred to as " the assessee ") is all individual. The assessment year is 1958-59 and the relevant accounting year is the financial year ended on 31st March, 1958. In the accounting year relevant to the assessment year under reference the assessee was partner of M/s. G. S. Atwal Co. (Asansol), Contractors. Apart from share of income from the said f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding to s. 18A(3) of the 1922 Act). The ITO held as the original assessment resulted in no demand due to assessee's share of loss from the said firm, no finding could be given at that stage. Further, he was of the opinion that only after the revision of the assessment made on August 12, 1968, that the action u/s. 273 of the 1961 Act was called for and that fact was recorded in the order sheet dated August 12, 1968. Lastly, the assessee contended that in view of the provision of s. 275 of the 1961 Act, the ITO had no jurisdiction to proceed with the case when the penalty proceedings was not commenced in the course of the assessment proceedings. This too was rejected by the ITO as, according to him, penalty proceeding was initiated before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax without any reasonable cause. The Tribunal has held that the assessee being new to the business and tender in age, had reasonable cause for not furnishing the estimate u/s. 18A(3) of the 1922 Act. This finding of the Tribunal has not been challenged. In view of the finding of fact made by the Tribunal, it must be, held that an order of penalty could not be lawfully passed against the assessee in this case. Therefore, in our opinion, the first question has really become academic. We reframe the second question as follows: " Whether, on the facts and in the circumstances of the case, the penalty under section 273(b) of the Income-tax Act, 1961, could be imposed on the assessee ? " The question, in our opinion, brings out the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
