NEPOLI RESTAURANT Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a registered firm and the assessment year is 1969-70. THE return of income was due to be filed by it in respect of the assessment year on or before June 30, 1969. A notice under s. 139(2) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), was served on the assessee on July 3, 1969. In spite of this and several other notices that were issued under s. 142(1) of the Act, the return was filed only on December 16, 1970. THE ITO, therefore, took action under s. 271(1)(a) of the Act to levy penalty and after hearing the assessee levied a penalty of Rs. 17,720 under s. 271(1)(a) read with s. 271(2) of the Act. THE AAC and the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore, dismissed the appeals filed by the assessee.

(2.) AT the instance of the assessee two questions are referred to this court under s. 256(1) of the Act:

(3.) IN so far as the second question is concerned, it has to be observed that s. 271(2) of the Act provides that when the person liable to penalty is a registered firm or an unregistered firm which has been assessed under clause (b) of s. 183, then notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-s. (1) shall be the same amount as would be imposable on that firm if that firm were an unregistered firm.