SHETH GUNVANTLAL MANGALDAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE same question has been referred by the Tribunal under section 66(1) of the Indian Income -tax Act, 1922 (hereinafter referred to as the Act) in each of these three references and we will dispose of them by this common judgment. The interesting question which arises in these three references is as to the effect of the repeal of the Act by the Income -tax Act, 1961 (hereinafter referred to as the Act of 1961).

(2.) IN Income -tax Reference No. 25 of 1965, the assessee is an individual and the relevant assessment year is 1962 -63. The Income -tax Officer called upon the assessee by a demand notice under section 18A (1), dated June 10, 1961, to pay advance tax in four equal instalments falling due on June 15, 1961, September 15, 1961, December 15, 1961, and March 15, 1962. For the purposes of this judgment, the amount which the assessee was called upon to pay is not relevant. The assessee failed to pay the instalment which fell due on December 15, 1961. The Income -tax Officer required the assessee to pay immediately the tax instalment which was being demanded and which had remained unpaid and in default of the payment, the assessee was asked to treat the letter as a show -cause penalty notice for non -payment of tax on the due date. The assessee neither paid the tax nor appeared before the Income -tax Officer on the due date to explain to him the circumstances. Thereafter, on September 15, 1962, the Income -tax Officer imposed a penalty on the assessee in the sum Rs. 3,575 under section 46(1) read with section 18A of the Act. This penalty order was challenged before the Appellate Assistant Commissioner and the appeal was dismissed. Thereafter, there was a further appeal before the Tribunal and the Tribunal also dismissed the appeal, and, thereafter, the following question has been referred to us by the Tribunal :

(3.) IN Income -tax Reference No. 31 of 1965, the assessment year was 1962 -63. The assessee had been called upon by the demand notice under section 18A (1) served on the assessee on May 31, 1961, to pay advance tax in four equal instalment payable on June 15, 1961, September 15, 1961, December 15, 1961 and March 15, 1962. The first three instalments were paid by the assessee but he failed to pay the last instalment that fell due on March 15, 1962. In the case of this assessee also, the Income -tax Officer wrote a letter to the asking the assessee to pay immediately the tax demanded and which had remained unpaid and in default to treat the said letter as notice for penalty. The assessee neither paid the tax nor appeared before the Income -tax Officer to explain the circumstances and ultimately the Income -tax Officer imposed the penalty in the sum of Rs. 1,160 under section 46(1) of the Act read with section 18A of the Act. Against the order imposing the penalty the assessee appealed to the Appellate Assistant Commissioner and the appeal failed. There was a further appeal to the Tribunal and the Tribunal also dismissed the appeal and thereafter at the instance of the assessee, the same question, which has been set out above, has been referred under section 66(1) of the Act.