| Case ID |
5c7c73ea-187b-41b4-a490-04696cba7daa |
| Body |
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| Case Number |
MISC. CIVIL CASE No. 18 OF 1973 |
| Decision Date |
Jul 12, 1978 |
| Hearing Date |
|
| Decision |
The Madhya Pradesh High Court held that the default made under section 139(1) of the Income-tax Act continued until the return was filed, and the issuance of a notice under section 139(2) did not erase the default. The court emphasized that filing a return under section 139(4) does not absolve the assessee from the penalty under section 271(1)(a). The court found that the assessee was aware of the penalty proceedings and had received adequate notice regarding the requirement to file returns. As such, the penalties imposed for the assessment years 1962-63 and 1963-64 were upheld, confirming that the default persisted until the returns were filed on February 22, 1964, and penalties were rightly imposed. |
| Summary |
In the case of Chunnilal & Bros. vs. Commissioner of Income Tax, the Madhya Pradesh High Court addressed significant issues regarding the late filing of income tax returns under the Income-tax Act, 1961. The court examined the implications of sections 271(1)(a), 139(1), and 139(4) in relation to penalties for non-compliance. The court concluded that merely receiving a notice under section 139(2) does not eliminate the default under section 139(1) and that the filing of returns after the due date still incurs penalties. The judgment underscores the importance of timely compliance with tax obligations and clarifies the legal framework surrounding penalties for late submissions. This case serves as a crucial precedent for taxpayers and legal practitioners, emphasizing the stringent nature of tax compliance regulations and the consequences of defaults. Understanding the nuances of the Income-tax Act is essential for effective legal representation in such matters. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
G.P. Singh,
J.S. Verma
|
| Lawyers |
S.C. Daharwal for the Applicant,
P.S. Khirwadker for the Respondent
|
| Petitioners |
Chunnilal & Bros.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1979 SLD 1158,
(1979) 119 ITR 199
|
| Other Citations |
Hajarilal Kishorilal v. CIT [1967] 64 ITR 563 (MP),
CIT v. Indra & Co. [1971] 79 ITR 702 (Raj.),
CIT v. Hindustan Industrial Corporation [1972] 86 ITR 657 (Delhi),
Mullapudi Venkatarayudu v. Union of India [1975] 99 ITR 448 (AP),
Addl. CIT v. Seth Devi Chand & Sons [1978] 111 ITR 724 (All.),
CIT v. Gangaram Chapolia [1976] 103 ITR 613 (Orissa)(FB)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(a),
139(1),
139(4)
|