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TMI Blog1977 (12) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... l against imposition of penalty of Rs. 4,475 under s. 273(c) of the Income Tax Act, 1961. At the time of de-novo hearing for the first time before us the assessee urged an additional ground that order of the penalty was void as s. 273(c) came into force from 1st Apr., 1970 and on the date of the alleged default, there was no provision for penalty for this offence. 3. To understand this point, the amendment to the Income Tax Act by finance Act 1969 is necessary. Under s. 212, an assessee is to pay advance-tax. Previous position was that for a person who was previously assessed, the department has to issue notice under s. 210. If an assessee paid advance tax on the basis of that notice he need not do anything more. By finance Act, 1969, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3-A),though the responsibility was put on the assessee, there was no provision imposing penalty for this default on that date. That provision came only with effect from 1st April, 1970. He referred to 29 I.T.R. 337, 98 I.T.R. 564 and 108 I.T.R. 787 in support of this contention. 7. Dealing with merits, Shri Desai stated that the assessee was staying in Delhi though he was assessee at Ahmedabad as he had share from a firm here. The notice of advance tax payable by him was received by an employee of the firm and advance tax was paid accordingly. All of a sudden, the firm was dissolved and the assessee became sole owner of that business for three months of the accounting year which resulted in very substantial addition to the assessee's in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so for defaults connected with advance tax relating to that year. He also urged that when both the provisions were introduced by the same Finance Act, it could not have been the intention of the legislature to provide for an obligation in an earlier year and provide for penalty for default only after lapse of some period, i.e. not providing for any penalty for defaults in the first year. 11. In our view, however, the provisions are clear. Default has been committed on 15th March, 1970 as that was the last day by which the assessee had to file the estimate under s.212(3A).s.273(c) provides for penalty for not filing estimate. However, s. 273(c) came on the Statute Book only from 1st April, 1970 and hence on the date when the offence was c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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