| Case ID |
3821b710-bfa6-47f0-8800-0834795b1cf3 |
| Body |
View case body. Login to View |
| Case Number |
IT REFERRED CASE No. 8 OF 1959 |
| Decision Date |
Nov 30, 1960 |
| Hearing Date |
|
| Decision |
The Income-tax authorities could not levy penalties on the assessee both under clauses (a) and (b) of section 28(1) of the Income-tax Act when the assessee committed defaults by not filing a return at all though required to do so under section 22(2) and by further not complying with the notice under section 22(4). Only a penalty under section 28(1)(a) could be imposed. The Court held that the Income-tax Officer did not have the authority to impose penalties under section 28(1)(b) for failure to produce accounts when the assessee did not furnish a return. The decision was made in favor of the assessee. |
| Summary |
In this case, the Mysore High Court dealt with the penalties imposed on S. Narayanappa & Bros. for failing to comply with income tax regulations during the assessment years 1951-52 to 1954-55. The court analyzed the provisions of the Income-tax Act, 1961, and the Indian Income-tax Act, 1922, particularly focusing on sections related to penalties for non-compliance. The central issue was whether the Income-tax Officer could impose penalties under both sections 28(1)(a) and 28(1)(b) when the assessee failed to file a return. The court concluded that imposing penalties under both clauses was not permissible, emphasizing that the Income-tax Officer could only levy a penalty under section 28(1)(a) in cases where no return was filed. This ruling highlights the importance of adhering to procedural requirements in tax law and affirms protections for taxpayers against excessive penalties without clear legal authority. This case is significant in understanding tax law compliance and the limitations of tax authority powers. Keywords: Income-tax Act, penalties, tax compliance, Mysore High Court. |
| Court |
Mysore High Court
|
| Entities Involved |
|
| Judges |
A.R. Somnath Iyer,
K.S. Hegde
|
| Lawyers |
K. Srinivasan,
G.R. Ethirajulu
|
| Petitioners |
S. Narayanappa & Bros.
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1961 SLD 172,
(1961) 41 ITR 125
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
271(1),
28(1),
22(2),
22(4)
|