COMMISSIONER OF INCOME TAX Vs. KOHINOOR FLOUR MILLS

JUDGEMENT

(1.) A short but interesting question arises about the date as on which penalty under S. 273(b) r/w s. 273(ii) of the IT Act, 1961, may be levied. The dispute arises out of the following question which has been referred to us for opinion :

(2.) SHORTLY stated the facts leading to this reference are as under : The assessee is a private limited company. The relevant assessment year is 1965 66. Before this assessment, the assessee company was not assessed previously. It was, therefore, liable to file an estimate of advance tax payable under S. 212(3) and pay tax accordingly. The estimate was to be filed before 1st March, 1965, and the advance tax was to be paid before 15th March, 1965. It appears that on 25th March, 1965, the assessee filed an estimate showing an income of Rs.

(3.) THE question, which has been referred to us, has caused us considerable anxiety in determining the true scope and effect of S. 273(b) read with S. 273(ii) of the IT Act, 1961. In order to understand the scheme of the penalty prescribed by S. 273(b), we have been required to consider ss. 217, 215, 212 and 211. The relevant portions of S. 273(b) and S. 273(ii) so far as they are relevant for purposes of this reference read as under :