AVTAR KRISHAN DASS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following questions have been referred for our decision under S. 256(1) of the INCOME TAX ACT, 1961:

(2.) IT is necessary to state a few facts. The assessment years are 1955 -56 and 1957 -58. On 21st Dec., 1966, the IAC passed orders under S. 271(1)(c) of the INCOME TAX ACT, 1961, imposing penalties of Rs. 5,000 and Rs. 4,000, respectively, on the assessee for the above two assessment years. At the end of his order, the IAC directed the ITO to issue necessary demand notices and challans and collect the amount of penalty. In pursuance of the order of the IAC, the ITO issued notices of demand on the same date and these were duly served on the assessee. Para 7 of the demand notice was in the following terms:

(3.) THE Tribunal, however, declined to condone the delay by its orders dt. 29th April, 1969. The Tribunal pointed out that the delay in filing the appeals was on account of professional incompetence and negligence. After referring to the decisions in Highton vs. Treherne (1878) 39 LT 411, Surendra Mohan Roy Choudhury vs. Mohendra Nath Banerjee (1931) ILR 59 Cal 781 : AIR 1932 Cal 589 and Bijuboo vs. Rajaballi Tayaballi AIR 1929 Bom 393, the Tribunal held that they were not satisfied that there was sufficient cause for the inordinate delay in the preferring of the appeals against the orders of the IAC. They, therefore, dismissed the appeals as barred by time.