PAILY M O Vs. ADDITIONAL INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is a member of M/s Maveli Lazar Ouseph and Sons, Irinjalakuda, an association of persons, which was directed to pay by way of income-tax a sum of Rs. 17,769-4-0 on or before 30th June., 1955, in respect of the asst. yr. 1953-54 (accounting period : 1124 M. E.). The assessment was by the first respondent, the First Addl. ITO, First Circle, Trichur, and the assessment order is exhibit P dt. 23rd May., 1955.

(2.) THE petitioner appealed against the assessment for and on behalf of the said association of persons to the AAC,Trivandrum. Exhibit P1 is the memorandum of appeal and exhibit P2, the order of the AAC, dt. 23rd Oct., 1956. The concluding portion of the order reads as follows :

(3.) EXHIBIT P11 reads as follows : "These four revision petitions are against the penalties of Rs. 788, Rs. 750, Rs. 1,500 and Rs. 100, levied respectively on dt. 22nd Oct., 1955, 7th Jan., 1956, 11th Feb., 1956, and 14th Sept., 1956, by I Addl. ITO, Trichur, for default in payment of the taxes due for asst. yr. 1953-54. As per assessment order dt. 23rd May., 1955, the tax demand of Rs. 17,769-4-0 for the year was payable on or before 30th June., 1955. The assessee paid only Rs. 1,000 on 30th June., 1955, and he requested for permission to pay the balance in easy instalments. The ITO intimated his inability to grant the request and asked the assessee to pay the balance before 30th July., 1955. But no payment was made accordingly. Hence the ITO imposed a penalty of Rs. 788 on 22nd Oct., 1955. Later, concessions for clearing off the arrears in instalments were granted by the IAC, Ernakulam. But the instalments were not kept up. Hence penalties of Rs. 750, Rs. 1,500 and Rs. 100 had to be imposed by the ITO on dt. 7th Jan., 1956, 11th Feb., 1956, and 14th Sept., 1956, for assessee's default in respect of the part or whole of the demands outstanding on those dates. There were clear defaults on all the occasions on which the penalties were levied. However, it is seen that a major portion of the assessment was in dispute and on assessee's appeal, the AAC of Income-tax has set aside the assessment and remanded the case for fresh disposal after considering the explanations filed by the assessee regarding the cash credits and after making necessary investigations. Considering the extenuating circumstances of the case, I shall give the assessee some relief. The penalties of Rs. 750 and Rs. 1,500 levied on 7th Jan., 1956, and 11th Feb., 1956, are reduced to Rs. 400 and Rs. 750 respectively. The other two penalties are confirmed. Revision petitions 257/56-57 and 280/56-57 are rejected and revision petitions 278/56-57 and 279/56-57 are allowed."