SUDHIR SAREEN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner is an individual deriving income from salary, house property business and profession capital gains and other sources. On 31.10.95, the petitioner filed his return of income of Rs. 38,06,338.00 for the assessment year 1995-96. On the basis of the returned income the tax payable worked out to Rs. 10,93,330 .00 and interest under Section 234 and 243 worked out to Rs. l,99,346.00 . Thus total tax and interest payable by the assessee worked out to Rs. 12,90,676.00 after giving credit to the tax deducted at source.

(2.) Admittedly the petitioner had not paid the tax calculated by himself and therefore no proof of payment of this tax was filed alongwith the return. After scrutinising the return the Deputy Commissioner of Income-tax v/ho is the Assessing Authority issued a notice undersection 139(9) of the Act pointing out that the return was not accompanied by proof of tax, if any, claimed to have been deducted at source and tax on self-assessment "claimed to have been paid". It was also stated that if the defects were not rectified within 15days of thedate of receipt of the notice, the return filed will be treated as invalid and non-est. The time granted for compliance was extended from time to time. The petitioner also went on seeking time submitting that certificates of tax deducted at source were not received from some of the companies which he was trying to secure. On 6.3.96, the assessee was given a last opportunity of removing the defects latest by 12.3.96. On 13.3.96, the Assessing Officer passed an order (Annexure P-5), the operative part whereof reads as under:

(3.) On 26.3.96, the petitioner preferred a revision to the Commissioner of Income-tax against the order dated 13.3.96. It was stated inter alia in the memo of revision that the petitioner could not pay the tax under Section 140-A for want of liquid funds and financial stringency. It was prayed that the order dated 13.3.96 be set aside and the Assessing Officer bedirected to allow time upto 30.4.96 to satisfy the demand under Section 140-A of the Act. It was also prayed that the Assessing Officer bedirected to make an adjustment of the dues to the assessee for earlieryears by deciding the pending applications under Section 154 of the Act.