PILLIAH K Y Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are references under s. 66(1) of the Indian IT Act, 1922 (to be hereinafter referred to as the "Act"), in ITA Nos. 289 and 290 of 1961-62 before the ITAT, Madras Bench.

(2.) THE learned Judge set out the statement of case which ran as follows : By this application, the assessee requires the Appellate Tribunal to refer to the High Court certain questions of law, which are said to arise out of the Tribunal's consolidated order dt. 24th April, 1962, in ITA No. 289 of 1961-62 and 290 of 1961-62. Inasmuch as, in our opinion, a question of law does arise out of the aforesaid order, we hereby draw up an agreed statement of the case and refer it to the High Court of Mysore at Bangalore under s. 66(1) of the Indian IT Act. THE assessee was a partner in the firm of K.Y. Pilliah & Sons. In the asst. yr. 1956-57, the total income of the assessee was computed at Rs. 31,314. THE assessment was completed on 24th Aug., 1959. First assessment was for 1954-55 on 12th March, 1959, for which return had been filed on 2nd April, 1955. THE assessee had also filed return for the asst. yr. 1955-56 on 2nd April, 1956. For the asst. yr. 1956-57, in the view that the assessee had not paid advance tax under s. 18A(3), penalty proceedings were initiated and notice under s. 28(3) issued. THE ITO thought that during the financial year ended 31st March, 1956, the assessee should have paid advance tax under s. 18A(3) since he had not hitherto been assessed, rejecting the assessee's contention that he was not a new assessee within the meaning of s. 18A(3). THE penalty so imposed was Rs. 1,247. THE assessee appealed to the AAC who held that the words "hitherto assessed" used in s.18A(3) clearly meant actual assessments and that the attempt of the representative of the assessee to equate "hitherto assessed" to "assessable" could not be accepted. He held that the assessee had failed to comply with the provisions of s. 18A(3) for the asst. yr. 1956-57 and penalty under s. 18A (9)(b) r/w s. 28(1)(a) was correctly levied. THE assessee appealed to the Tribunal and contended :

(3.) IT may be that sometimes the applicability of s. 18A(3) is attracted because of the delay in making the assessment. But that is not a relevant consideration in interpreting s. 18A(3). IT is open to the assessee to make his own estimate and pay advance tax on that basis.