| Case ID |
108c4116-14a6-4581-b917-3ab2b6c3ffc9 |
| Body |
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| Case Number |
D.B. Income-tax Reference No. 48 of 1983 |
| Decision Date |
Aug 11, 1988 |
| Hearing Date |
|
| Decision |
The Tribunal was correct in ruling that the penalty under section 271(1)(a) of the Income-tax Act, 1961, for the registered firm cannot exceed 50% of the assessed tax. The assessee filed a return late for the assessment year 1974-75, and the maximum penalty was rightly determined based on the assessed tax of Rs.1,407. The Income-tax Officer initially imposed a penalty of Rs.2,580, but this was reduced to Rs.700 by the Appellate Assistant Commissioner, a decision upheld by the Tribunal. The Court concluded that the penalty framework in place prior to April 1, 1976, limited the penalty to 50% of the assessed tax, thereby supporting the Tribunal's decision. |
| Summary |
This case revolves around the application of the Income Tax Act, 1961, specifically focusing on the penalty provisions under section 271(1)(a) for the assessment year 1974-75. The core issue was whether the penalty for late filing of income tax return could exceed 50% of the assessed tax for a registered firm. The Income-tax Officer had initially imposed a penalty of Rs.2,580 for the late return filed on December 15, 1975, which was well beyond the maximum limit as established by the law at the time. The Appellate Assistant Commissioner and subsequently the Tribunal both agreed that the penalty should not exceed Rs.700, which was 50% of the assessed tax of Rs.1,407. The High Court upheld this interpretation, reinforcing the importance of adhering to statutory limits in penalty assessments under income tax law. The decision highlights key legal principles regarding tax penalties and the responsibilities of both the tax authority and the assessee in compliance with tax regulations. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
J.S. VERMA, C.J.,
N.C. KOCHHAR, J
|
| Lawyers |
B.R. Arora for the Commissioner,
Nemo for the Assessee
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
SUGAN CHAND & SONS
|
| Citations |
1991 SLD 35,
1991 PTD 128
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
256,
271(1)(a)
|