K YPILLIAH Vs. COMMISSIONER OF INCOME TAX BANGALORE

JUDGEMENT

(1.) These are reference under section 66(1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the "Act"), in I.T.A. Nos. 289 and 290 of 1961-62 before the Income-tax Appellate Tribunal, Madras Bench.

(2.) The learned judge set out the statement of case which ran as follows :

(3.) The assessee was a partner in the firm of K. Y. Pilliah & Son. In the assessment year 1956-57, the total income of the assessee was computed at Rs. 31,314. The assessment was completed on August 24, 1959. First assessment was for 1954-55 on March 12, 1959, for which return had been filed on April 2, 1955. The assessee had also filed return for the assessment year 1955-56 on April 2, 1956. For the assessment year 1956-57, in the view that the assessee had not paid advance tax under section 18A (3), penalty proceedings were initiated and notice under section 28(3) issued. The Income-tax Officer thought that during the financial year ended March 31, 1956, the assessee should have paid advance tax under section 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 section 18A(3). The penalty so imposed was Rs. 1,247.