Maya Rani Punj v. Commissioner Of Income Tax, Delhi

RTA rat Te (aitaat)TAT| arrearage, farett (11 faaraz, 1985) armas ato Ho FamgwTy, Tears Tasit ale Inara fay) ataetoafafeaa,1961(1961sT43)—emer 271 (1) (%) ate 297(2)(a) aite.(w)—[aafen genefea Gaz, 1922 St are 28]—ala aa Wea area ATTA—anfea—faatizal are aaag aaa H waz araHe faaoitaign fae ata & cafane fear ari—arane aferertan,anfea fagae aratigat 1922 ate cee st are 28 & ataa GH, MTT afafray, 1961 Ht ate 297(2)(a) site(3) ® ava afsa ater 171(1)(%) &aeita ara wearfafaaraa f—anfer st sata sea st ada antefaatzor qu gta & m2 ag arte shit fraal arene afaaret—oanfes feos srienfgat area wedat faftsaa Great 2| .afaett,1950—aaese201(1)[aaferareneafafran, 1961, ater 271(1)(%) |—fafaa anfer & atfersafer & aferttan ar set —faatfeetgreet saqag ate& ara aiaant fracot ar Stee fear srat—faaea & ferazoitqa fag ott & wren qrast aferert sre afer et|afadtfca fear srat—a'feearet 271(1)(%)stfer atagra at africa welt 8, cafae sae afaarr & aque20(1) st axferoreter wat Brat -agarrat Fraterad 1961-62 & arafaa Gi frac28 faarat, 1961 am et srt at, fag ag va aaa ae lat 7 algem at me ate adi sat fac aaa agry at att at ay tfratfedt13 9, 1962 saa arta %, fram ag sega at 1128 seaeTa TT fava afawt [1986] 2 BAe fo Fo areal atfec at, ara ata a st afia aaa % are faacoil areaSTI 1att, 19628 arene afafian,1961 saa dtaati »araax afaaret § 1961 ate afafror at are 271(1)(#) ®ala araarfeat at att ga faeny & arartget fe fadt atgfaagaa srer at frathtdd atfaaeot sega we aca raatqEAA BT ATIAT HLA F agl VHTar, saw sre aqaas vitae | CMfrat segafac mA A eyaanra F HITT 4060 Vay atuifer aferafta at i fratfedtte agian aga (ater) & averattr Hwa sa afes & aferrtrn wt satel ah, fat geadia wza saat fear ate athe arts we atart adler Hey gzadlerafaazr * ag afafaaifea fear fe mfer 1961 a1 afafrad &welt serena @, fag afer ay wan genm day tae, 1922 aTare 28 & sree & aqarefraifer st sat dt1 1922 % dazesqiaa at ay Htt gu afaney F afer FY erst 400ead ae fear) nes Frater at orange 1961 art afufay at »ary 256(1) % ate farafafad seq sea caraaa a frefngfar Tat: Far ee ATA H eal Harare ge ale saat ofefeafaat%, afaace at are 271(1)(*)Fadler sandta afer at dasate are & fav, fram chra eafasn aar tar, 2 sfama ¥ acrazufe & an aad ag, Tt fe aega atte 50 sfeaa BafeeTet, wa we fate at aise Aare? sear a feeOyaT Sax uses frat F get F ate faaifedt ® fees fears gatega aaa A mf at ule wet &, cafe fafa ar svt arfiaqaweca re ate saat oft & Mat tar seq at war & WM Hrsifaatitat ate seqeqraraa &afaarftalF aaa ota: sere darei ata a yea sarmaa odt fia} fase seaaararataa FT ate area Blailer aria HWA By, cons afafaetfza—aaft eafaan faarax,1961% gat ar,aarfa afer &affection & faaasragatfeatstew wa Fsalsa fara atta agate 3, safe far ag frat arAZITT BW BT sraHe arfgared a wafer farsa srzarfgat awper ar fafavaa fara:afer & arafeadfeafa F artF aTRaTST1961 ate HVA afafran -H fer at ary are Far 271(1)(") oy ara shar Favafas sade 1 aes (Fe at fH 12) aa Tat Wal ATU ag Tare Mi aT sar w anargate ata aga a fara date Taw aealt star ¥ farwt feat mar 21 ae ta aguasa cH se wm feat fara arSaal grarat Hl IAT aT aagTTTT F seaeq Aare ale frayprem afta % fare erat gta ogar & 1 ag arafea aa aH sat WaT@ 4a d& fe sat fram ar saat aera wr aaa at aGITAT TetBt fear qat | Ta TT AAAI AT HaqaaT glare, Ta aa Waarea ar feat star afsa gate1 aoHreFH awa F aeaweat ag ¢ fe cH A He ar ale ater age UH TT at asa Ffag at fear star gate gat A Hr ar ata tar stat g fasBIT ATU BAA FAT eat Fate gafan Wa wraA ay wea FauratT sae amt aqua afsa AasWa Ty WA areaATA F AAT A aT F Bay TA UST HT aca faaara sar z|Ue aT VS aaa F ares A faarara sgt gate safe arua|afsa HA arear HIT aT AIT TH at ate aMHF fac He feararar #1 (Ga 14) MAYA RANI PUNJ COMMISSIONER OF INCOME TAX, DELHI, DECEMBER 11, 1985 [V ,0, TULZAPURKAR, SABYASACHI MUKHARJI AND RANGANATH MISRA, JJ ·] Income Tax Act 1922 : Section 28, Income Tax Act 1961: Sections 271 (l)(a), 297(1) and 297(2)(j). lJelay in f illng return for assessment year under 1922 Act -Penalty - Quantum of -Determination -1961 Act coming effect -Discretion to reduce penalty fixed under new Act -Provision of new Act -·Availability of. 1961 Act coming into Imposition of penalty - Assessment year or date of filing return - Not material - Satisfaction of assessing authority that default occurred - Importance of. Return - Non-filing of -whether a continuing default. The appellant is the ·assessee. The year of assessment was 1961-62. The return was due by September 28, 1961 but the same was neither. filed within that time, nor was any extension asked for. The assesses filed the return on May 3, 1962 beyond more than seven ·months of the due date. With effect from April 1, 1962 the Income Tax Act of 1961 had come into force, The . Income Tax Officer finding that the assessee had not been prevented by any reasonable cause for not complying with the statutory obligation to make the return, took proceedings under section 27l(l)(a) of the 1961 Act and imposed a penalty of Rs.4,060 for failure to furnish the return within time. The assessee challenged the imposition of penalty by preferting an appeal to the Appellate Assistant Collmissioner who refused to interfere and dismissed the appeal. On further appeal the Appellate Tribunal held that penalty was leviable under the 1961 Act, but the amount of penalty had to be quantified according to the provisions of section 28 of the Income Tax Act, 1922 and applying the provisions of the said Act reduced the penalty to Rs. 400. The question whether 'the Tribunal was in law competent to reduce.the penalty levied under section 27l(l)(a) to a figure lower than the Slllll equal to 2% of the tax for every month during which the default continued' , was referred at the instance of the Revenue to the High Cour~ which answered the reference in favour of the Revenue and against the assessee by relying upon section 297(2)(j) of the 1961 Act and holding that section 271(1) of the Act was applicable to the levy of penalty for defaults comnitted under the 1922 Act, and that the word 'may [1 ]used in section 297(1) of the 1961 Act vested in the Income Tax Officer discretion either to levy or not to levy a 'penalty but if he did decide to levy one, he had no option but to levy the penalty at the prescribed rate. Dismissing the appeal of the assessee, this Court, HELD: 1. The assessment was made on June 30, 1964 and proceedings for imposition of penalty were directed to be initiated that day. Provisions of section 27l(l)(a) of the 1961 Act were fully applicable and the demand of penalty was thus justified being within the limits of law. [842 CJ 2. Under the 1922 Income Tax Act liability to make a return was contingent upon service of notice under section 22, while under the 1961 Income Tax Act every person having a taxable income has under section 139 the liability to make a return within the time provided by the Act. [833 DJ In the instant case, clause (£) of section 297(2) of the 1961 Act is not attracted because the return was filed on May 3, 1962 and assessment was made subsequent to April 1, 1962. [833 DJ Care sat tea ara ATA” afaenfar a ae afta g fe Taae fe sofas are qat War %, CA ATT F are A ag aaa Tar@ fa agstewart ar ward ate gat aT F Va AeA TAT WETAra ATU ATA Arar J Aer Br MAagT HTT H Ta faraeral TTfait gtat 3, wT fa sa afadfra azar & ate 1961 are afafaanat ara 271(1)(%) ¥ sqaa ararat tat gugafeafa >araeg Hag at faara vate fe faarraose ar arma ag ar fesaa fare agg a BAH aA H aT A as Aa area faag aa sar Tet arat eafawa eaatq tat ae @, faas faaifet ware Sal &1 safe sat atta & Tt starz ale HAa F Gat ATT AH TA AAT TH TR WaalTT TH VAST WATTafer ae ate sa ae ag cafama ara al at oar i faa-sfafea ($ srg ga erga) at fean a dar sfre arent az aylat @, afew aifem arene gt any graT ot “ATL TAT MEA TAT. are” afaeafea % aifoes fafa F gurea ae ata ae frat gbafe feat afwecet cafea gre fearaar ag srr aga afdBa & ate afeag art faa-cfafer are gar wear @, at ae faa-sfafer afserea qaT are aT TH BAT Tag wa aH fH CarHT A FAT LAAT F | TATATHAT: HTAe HT A sa Hae UH gt AMTHIT KI Fi feeg aT ta asa area sHrana gw fa faa-Safar fae or aaa gate ceases sat Hay are areralml ata at ae afore fear war 2s fe Fare aa TEA ATA ATTA stafer at tar afacter at sam cafesan dt alfaa a at, fagSt ary aa wet ate eae FH Mae F fear mar al, eed: Faaay Tz Slay g fH faawont sega Hwy st aeTaT HT aATTIATaa am caftra war & wa am fin Rar cafes ara sat WATSfafer ot aga & faar arg vt se-anfea ara at wea TA aT% ofa fata wrt ec afta dat 81 ag feafa at arfea avfaq say onfear & fac aferdita att8, afen aa aeafertana wea e wa ae fe ag afer area aa ware aktet arfer at aoa arf arert ot fafa at Sweat Ae & ateBaa safe geal F fart aaa ar gar aaa & fe aa aH faFrertfech fafix atarterratl er agaraa agl ax 2ar 2, aa aH ageafamam ar ayy sar teatatt fafa are sadfaa arfeaarfaeareitat aa teat1 (Fw 17, 18 ate 19) ate 8S ara orate 2, fora ta cafesBH art Fagargaee frat var g fe sas aren fea-cfafer afer wars sat 1.A TAT Tt AAT ATT IT AT TAT WA ara aly He wi at,HIT BT AY TAT WA ara Var wag, Ti eaa gt ara war war@ laf ale aden faa-ofafer are aar wgar 3,at fea-nfafaa vaHHT BT TATUATT AT TA WA ara ao Fi. sas aferdfra atart arett anfer at cafma F ata aaraara & fae sede wet F-1961 arer afeaframy Bt aret 271(1)(%) & aeat faerat cata ¥TY TT TSA aT ato at feafa F fore sods fear var dt gegeaaa #30 9,1964 at frater fear var at ate mfeaafactrn at artarfgat at araa ag Fate fear var at fs & oat.fer atreey aeBord 11961% afafrae sare 271 (1)(ep Riat tat & arda ga ave 8 ary Aa a atega THe arfea st ain gafareeqratfaa at, aaifin ag fafa at ataratl % sitac at 1 (Fz 20, 21)amar afafian,1961 stare 271(1) (#) & attafixaran & fac arfea at fafea at B far soda wet F afaara:& agede 20(1) atin adtgar ge afeag are ae at arefa afafaan at gata are 297(2) wrata fate 3, aati afer& faya i ug fate fear var ar fe gett ar eqaay querer UF sararart ater afirdfaa Paar aire, safe ge are oa attaret aag arue fear ar, sa ae He tar alg at asda ata set aT;—@faarat F agra 20 F aeta a ara fafes g, ag sa afer Fafas afrdoo at ara 2, oft fe are & faq ort F aaa aafafa & adie afedfea at ar aadei: gaits ga cosreT Fart ¥—aryel ate afaara—gza Aaa A ag agl Et HT aHATfe ag gaa afan 3, at fe areas fag fey at % aaa caTfafr ® aeita adtardt cz afdfaa fear ar gear art alfaferat frat aafafe ox gait 3 eqaam asrem & fre state fear,mat &, Sa THT Tal TST ST THAT aTAat fe ae Tat fafag, a aaifea & afan afrdfaa srl 2, Tt fe ara F Hw F aaTfafa ® adia afadfoa at at aadlot, wat fe ta agua F faggata at afefa at ate at dar aalat, ot fe afediva at orapat (411):|: aantfar fasta, { 1982][1982] fafara ar sda 2230:|aftdza de are atad ate we aT aaafecett farnrea siferaca att aa;20° [1980] [1980] fafaaa a aia 606 :.ateds Afar qos atasetsedefafaze alzam area sary feet ais nnfsaz, fexddwar gfe= [1955] Go argo azo 1955 ate 161:WT TATA Yo THo fadstarar; {1937] [1937] 81 aread ster 1182: Uses ato fasd aaa edz are artattea;,12 3. For the imposition of penalty it was not the assessment year or the date of the filing of the return that was important but it was the satisfaction of the income tax authorities that a default had been comnitted by the assessee which attracted the provisions relating to penalty. Whatever be the stage at which the satisfaction was reached, the scheme of section 274(1) and 275 of the Act of 1961 was that the order imposing penalty mw!t be made after the completion of the assessment. The crucial date, therefore, for the purpose of penalty is the date of such completion, and the satisfaction of the authority that proceedings for levy of penalty be initiat.ed. [834 F-GJ In the instant case, though the default occurred in September 1961 the date relevant for the purpose of initiating proceedings for imposition of penalty is when, following the assessment made, the Income Tax Officer decided to initiate the penalty proceed1ngs. The proper provision to apply for dealing 'with the situation relating to penalty is as provided in section 27l(l)(a) of the 1961 Act. [837 A-B] Jain Brothers & Ors. v. U.O.I. & Ors., 77 i.T.R. 107; Dlird 1- Ta Officer, Mnngalcrce v. H, llll"odar Bhat, 7l I.T.R, 606 - [1969] 2 s.c.R. 29, referred to. 4. Under section 26 of the 1922 Act the upper limit of penalty only was provided and there was no prescription of any particular rate as found in section 27l(l)(a) of 1961 Act. Pem.l.ty contemplated under the respective sections of the two Acts is quasi-criminal in character. [834 H - 835 A] 5. Accrual of penalty depends upon tne terms of the statute imposing it and in view of the language uaed in section 27l(l)(a) of the 1961 Act, the position is beyond di.spute that the Legislature intended to deem the non-filing of the return to be a continuing default the wrong for which penalty is to be visited, cannences from the date of default and continues month after moµ th until complisnce is made and the default comes to an end, The rule of de die in diem is applicable not on daily but on --monthly basis:-(840 H-] Corpus Juria Seci!!Mh11, Vol 85, P• 1027, referred to. 6. The imposition of penalty not confined to the first default but with reference to the continued default is obviously on the footing that non-complicance with the obligation of making a return is an infraction as long as the default continued. Without sanction of law no penalty is imposable with reference to the defaulting conduct. The position that penalty is imposable not only for the first default but as long as the default continues and such penalty is to be calculated at a prescribed rate on monthly basis is indicative of the legislative intention in Ulllllistakable terms that as long as the assessee does not comply with the requirements of law he continues to be guilty of the infraction and exposes himself to the penalty provided by law. [841 D-E] D>lld 1""'*' Ta Officer, Hsngalore v. H. ~ar Bhat, [1969) 2 s.c.R. 29, referred to and CosMssioDer of Wealth Tax, .Amitaar v. Sureah Seth, [1981) 3 s.c.a. 419, explained and over-ruled. 7. If a duty continues from day to day, the non-performance of that duty from day to day is a continuing wrong. The. legislative scheme under section 27l(l)(a) of the 1961 Act in making provision for a penalty conterminus with the default to be raised provides for a situation of continuing wrong. [842 B] [1894][1894] 1 stad fetta 293:_att aay ars afaaa||15 fafas adtet afearizar: 1974 a fataat atta qo 1943. 1968 % arage fata do soHFfaedt vor eararayaaNetard 21 faaeae, 1972 ate frog ate arte.fares at 7e atarat st att a:aqaqt cao HoFafFat, Aloto atfeat at Plo ato HX saat at ade 2adal Uo Ho AAT, Uo TitoZea att HATTo Garfact eararaa st fava earagia aerarat qasit * fear | earaafa qastt—, faaifedt & faedt sea rararaa } fafavaal al qatal Sa gu fate garaa aHT atte FT eI| 2. faaten ag 1961-62 2t feat 28 faarar, 1961 IF-dbonttoft, feeg ag ga aaa & vtaz a A orga HT mE att 7 atsak fav ana aert at att at aefratfedt73 ae, 1962 aTga atte %, faaat ag sega at oral aifeg ot, wa area atcafes ana% are faawoil area ati1 ata, 1962 8 aaReafafaaa, 1961 (aa ¥ 1961 arat afafaay) sac et aaT aT[|]araat afrera a1961 ae afafaay ay arer 271(1)(*)ade arfarzat af ate ca frond } arar< a fe feet atgfragaa sre a fralfedt at faacolt vega se aaelt raataaa BI aATTAT BWA A adl Var ar, aR ae TAT HATT ——Pareoit sega fq artgg amemar F srem 4060.00 wayafta afacdfea st. faaifedt § agra angaa (aa)Faneata awe va wifes & afta at ate a, fad gerade wera dart fear aaa afte ac diatade atqalaeafaaen * ag afafaatfca feat fis mfr 1961 7% afafaadala sangita @, fee afer st way genq daa daz, 1922(fat deta F 1922 arat Qae wer qar @) at ate 28 B® saat aargare faatfea at rat at 11922 % ae & aodat BY ay HW ET?afer to arfet at gerHe 400.00 era aefear) uses frata sretar gt 1961art afefaar at are 256(1) ® afefaar at are 256(1) ® at are 256(1) ® are 256(1) ® 256(1) ® ® atefarafafad sq sea eqraraa at faefad fear mat— art afefaar at are 256(1) ® afefaar at are 256(1) ® at are 256(1) ® are 256(1) ® 256(1) ® ® ate Maar ger are & aeat & arare ge ale gaat afefea.feeat H, aferewcor at aver 271(1)(#) & ata sandta afea”at Ua sean are & feu, frre stera cafes sar ter, 2%,— aurat ule 8 aa ates oH, The we & Haale F «0%:& afaa a gt, wawear fafa at afte & gaa at 2”. wea arava § fede ar gat Uses Prare F get F alte feather% favs fear,|a: 3. vale anfea at ue atet 2, aarfa fafes ar sea atfaarweet erg ale saat afer % tax Var ves ar ara 8 at HTcfaaftat att seq eoraraa } afraid & ama sa: seaglar 217|7 4. da oral & sade, fade ww 1922 am tae atare s aX ay 1961 ater dae aare &, faa ge % fafaraa &faa gana11922 aa dae tar 28%, wet aw fe aggama %, 3e soe feat qatar fe—| erat gat & fag ata & aghaa fear afac mfq—| a ‘ast F ag ga gaz 8: — “Penalty for concealment of income orimproper -distribution of profits—7Se is x| ra_ioY}: (1) afe ge afafaar & att fret artarfeat& dra araHt afer aTagrase argad (atte) arata afeaco ar fadt cafeaart F aarent aarat & fr—7 :(a) gfeagaa gaa a fear, gat Hat areatfaacol,fadtarsaeare22atSTATA (1) Ar sara (2) ar are 34 F ae|& af qaar are aafera&, aval at & ar gfaagattae & fear agara aaah aeat ate Ral QaAraren arafera Ufa & sat at %, azar ‘at ag ae fafase at amar fe tar eafaa arfea:# er H, qug (a) H fafase aur A sage are eTarate atx afganzo at, afe arg at al, Tar & (1) If the Income Tax Officer, orthe Appellate-Assistant Commissioner or theAppellate Tribunal,.insatisfied the course that any of any person— proceedings under this Act, is. (a) has without reasonable cause failed to-. _- furnish the return of his total income which he-was required to furnish, by notice'given under:sub-section (1) or sub-section (2) of section 22 or-section 34, or has without reasonable cause failed:to furnishitwithin the time allowed andinthe mannerrequiredby suchnotice,or-(b)|xxxX Ajit Kumar Sarkar v. Asaistant Registrar of Coapanies, West Bengal, [1979] Tax Law Reports 2001; United Savings and Finauce Co. Pvt. Ltd. & Anr. v. The Deputy Qdef Officer, Reserve Bank of India, [1980] Crl. L.J. 607; Oriental Bault of ec-rce & Anr. v. Delhi Development Authority & Ors., [1982] Crl. L.J. 2230; G.D. Bbattar & Ors. v. The State, A.I.R. 1957 Cal. 483, referred to. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1943 of 1974. From the Judgment and Order dated 21.12.1972 of the Delhi High Court in Income Tax Reference No. 50 of 1968 S.K. Dholakia, R.C. Bhatia and P.C. Kapoor for the Appellant. S.C. Manchanda, M.N. Tandon and Miss A. Subhashini for the Respondent. The Judgment of the Court was delivered by SABYASACHI MUKllAR.JI, J, The assessee is in appeal by special leave challenging the decision of the Delhi High Court reported in 92 I.T.R. 394. The year of assessment is 1961-62. The return was due by September 28, 1961, but the same was neither filed within that time, nor was any extension asked for. The assessee filed the return on May 3, 1962 beyond more than seven months of the due date. With effect from April 1, 1962, the Income Tax Act of 1961 ('1961 Act' for short) had come into force. The Income Tax Officer took proceedings under section 27l(l)(a) of the 1961 Act and imposed a penalty of Rs, 4,060 for failure to furnish the retur\1 within the time on a finding that the assessee had not been prevented by any reasonable cause for not complying with the statutory obligation to make the return. The assessee challenged the imposition of penalty by preferring an appeal to the Appellate Assistant Commissioner who refused to interfere and dismissed the appeal. On further appeal the Appellate Tribunal held that penalty was leviable under the 1961 Act but the amount of penalty had to be quantified acco<ding to the provisions of section 28 of the Income Taic Act, 1922 ( [1]1922 Act' for short). Applying the provisions of the 1922 Act, the Tribunal reduced the penalty to Rs.400. At the instance of the Revenue the following question was referred to the High Court under section 256(1) of the 1961 Act: "Whether, on the facts and in the circumstances of the case, the Tribunal was in law competent to reduce the penalty levied under section 2'7l(l)(a) to a figure lower than the sum equal to 2% of the taic for every month during which the default continued but not exceeding the aggregate 50% of the taic?" The High Court answered the reference in favour of the revenue and against the assessee. Though the quantum of peMlty is small, the question of 'law is of substantial importance, and covers on aspect which often arises for determination before the tax authorities and the High Courts. Provisions of three sections, one of the 1922 Act and two of the 1961 Act, are relevant for the decision of the point at issue. Section 28 of the 1922 Act, as far as relevant, provided : "Penalty for concealment of income or improper distribution of profits :- (1) If the Income Taic Officer, or the Appellate Assistant Commissioner.or the Appellate Tribunal, in the course of any proceedings under this Act, is satisfied that any person - (a) has without reasonable cause failed to furnish the return of his total income which he was required to furnish, by notice given under sub-section (1) or sub-section (2) of section 22 or section 34, or has without reasonable cause failed to furnish it within the time allowed and in the manner required by such notice, or he or it may direct that such person shall pay by-~‘was of penalty-in the case referred to in clause (a) in.addition to the amount of, the income tax and super- A136«|. Beaawamatea Fro afer [1986] 2 THe Fito to afafear elt ofa det ata, HT Ge THA F Se 5 1961 are afafaaa at at gama are are 271 ate 297 €1 aie 271, ara 28 a acidat sate 21 saatBraver (1)(%) Gara site Fi sat ae soar fear var g fe— “ate saat afraret or feat caer % art a aaTaTAetarat@ fr:| (=) afsagaa Bae aq ge eu saa Fa aT at faazont, fad 2ar sae are 139 HY gare (1) Fadlt atare139 at sqare (2) ar are 148 &att at rg gaa & atfaa 2, aét a) e ar giaagea«BaF aT Me gy aenfeafe are 139 at sare (1) setat tal qaat are agqara aayseat alt atfara Var & et at 8, ar xxxxXxx al ag ag fafzce ax aan fe tar afar wifes FETH farafafaa daa ata:| (@) Prat oer ear F sae gre dea Bt at THAa, afe arg gt, afafear ga sen are % fra, frreaera eafran aar wear’, faalfta ae 2% %aurat uta 0”a| ‘art 297(1) 47-1922 alm afafaan at faefaa fear atwet aefe scare (2) Gara @, Jad ag sta fear var ar fe— “afoeaay gan dag haz, 1922 (fae gad eae ces ta, if any payable by him, a sum not exceeding -one-and-a halftimes that amount:**+""""” “ye x! ;4SS —-atat tat gat (silat) To sTaAKT tga [FAto Tat]1137 facfaa afafraawa % fafece fear wat @), ¥ facfarata gg atj— (4) 1962 Fava % gan fer F qa qt farareqe feel wraral faatcr aeral at ar aaa afta ahat & att afatior alg afer & fac gesare afadfra at at ahiarat ag afafaae: afarat a gar a;. (5) 1962 % ara& 31a fer Bt aaree atary ag ar faat gaat ad & fag fet faateo araad St 1962 % ate & yaa feat wt at sat TeaTTqui faar var at, wifta & afta % fag ats araaval area at ar abit ate tat ate mfr geafafaan & adta afaafoa at at eat 1” 6. sa feafar at at cara dar cater & fae 1922 ate tac ®adie farcotsega awa at atfaer are 22% adta qaar atarta atqxw fattar, wafe 1961 ar afafarea F ada Caseater antec ar, faaat weaa ara 2, afafran are srafaat aaa &qatar139 % ata farce sega wet ar atfara 31 garyamar sega ays aot ® arare ae 1961 ae afefeay aqrat 297(2) at aos (a) ary aat gar,aaifefaarzott 3 az,1962 #1 Hea at Te slate faatem1 ata,1962 Fare farTat AT| 7. maar afrata a ag fread frarat fe ara ara a aeafan ar oafaaa gare1 sax1961 ara afafaan at arer 271(1)() ¥ aar-srifar 2% at ae safer afrdfar a ate4060.00 eae HRT at atte F ag ait Hag tal TE 1 afawTra mfea 400 BIC aH HA HA gr are 271(1)(s) F sadal Ffa fade vatfavor, faeg wet wot ar fate ga areata feurwat fr fratfedt dtare & alt ag ga ren eras a aqafeat Ler21 aca aroag Bane usted faa A ag arare acarar fae “anfer % atfercton & fagr Harrah fear & ate fe afefraa F he or it may direct that such person shall pay by way of penalty in the case referred to in clause (a) in addition to the amunt of the income tax and super tax, if any, payable by him, a sum not exceeding one and a half times that aDDunt ••••• " The two sections relevant to the point of the 1961 Act are sections 271 and 297. Section 271 is the corresponding provision of section 28. Sub-section (l)(a) thereof is the relevant provision. It provides : "If the Income Tax Officer • • • is satisfied that any person : (a) has without reasonable cause failed to furnish the return of total income which he. was required to furnish under sub-section (l) of section 139 or by notice given under sub-section (2) of section 139 or section 148 or has without reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section ( l) of section 139 or by such notice, as the case may be, or he may direct that such person shall pay by way of penalty (b) in any other case, in addition to the amount of the tax, if any, payable by him, a sum equal to 2% of the assessed tax for every month during which the default continued." Section 297(1) repealed the 1922 Act. Sub-section (2), as far as relevant, provided : "Notwithstanding the repeal of the Indian Income Tax Act, 1922 (hereinafter referred to as the repealed Act), - x x x (f) any proceeding for the imposition of a penalty in respect of any assessment completed before the first day of April, 1962 may be initiated and any such penalty may be imposed as if this AcJ: had not been passed ; (g) any proceeding for the imposition of a penalty i'n respect of any assessment for the year ending on March 31, 1962, or any earlier year which is completed on or after first day of April, 1962 may be initiated and any such penalty may be imposed under this Act ,,," It is sufficient to take note of the position that under the 1922 Act liability to make a return was contingent upon service of notice under section 22 while under the 1961 Act every person having a taxable income has under section 139 the liability to make a return within the time provided by the Act. On the facts of the case before us, clause (f) of section 297(2) of the 1961 Act is not attracted because the return was filed on May 3, 1962, and assessment was made subsequent to April 1, 1962. “anfer % atfercton & fagr Harrah fear & ate f