VARGHESE E K Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner in O.P. No. 2887 of 1972 is a partner of a firm, M/s. Vijaya Oil Mills, Alleppey, which firm is the petitioner in O.P. No. 2934 of 1972. THE question arising for decision in both these petitions is the same. It is about the propriety of imposition of penalty against the petitioners for default in payment of advance tax payable under the Income-tax Act, 1961. A notice of demand under Section 156 of the Income-tax Act, 1961, was served on the petitioner in O.P. No. 2934 of 1972 on June 2, 1969, for payment of a sum of Rs. 43,540. THE demand was payable under Section 220 of the Act. Since payment was not made, a penalty of Rs. 2,000 was imposed by exhibit P-1 order. A similar demand notice for payment of Rs. 26,962 was served on the petitioner in O.P. No. 2887 of 1972 and since such payment was not made a penalty of Rs. 1,000 was imposed. THEse orders were confirmed in appeal by the Appellate Assistant Commissioner of Income-tax. THE orders are exhibit P-2 in the two petitions. Revisions were filed before the Commissioner of Income-tax. Kerala, who by the (c)rders marked as exhibit P-4 in both the cases dismissed the revisions. THEse orders are challenged by the petitioner in these petitions.

(2.) THREE contentions by way of challenge to the orders of imposition of penalty were urged before the Commissioner of Income-tax as seen from exhibit P-3 and these three contentions are urged before this court too.

(3.) THIS amendment came into force with effect from April 1, 1971, and, therefore, does not cover the cases before me.