COMMISSIONER OF INCOME TAX Vs. G A SAMANTHAKAMANI

JUDGEMENT

(1.) This judgment shall dispose of both the Tax Case references as common question is involved. The following question was referred to us at the instance of the Revenue and under the directions of this Court: "Whether on the facts and in the circumstances of the case, the Appellate Tribunal's view that the provision of Sec.249(4) as amended would not apply to the assessee's case is sustainable in law?"

(2.) Few facts first: The relevant assessment years for these two Tax Case References are 1973-74 and 1974-75. The Income Tax Officer levied a penalty of Rs.1,799/- and Rs.1,902/- for these two years respectively under Sec.271(1)(a) of the Income Tax Act, 1961 (in short The Act) as the assessee had failed to file the returns in time. The assessee preferred appeals against these penalties. The Appellate Assistant Commissioner, however, found that the admitted taxes for the assessment years had not been paid up to 2-6-1978 when the appeals were presented by the assessee before him. The Appellate Assistant Commissioner also found that there was no extenuating circumstances for non-payment of taxes on the admitted income and, therefore, he rejected the appeals without admitting the same in terms of Sec.249(4). The matters were taken to the Appellate Tribunal which found that since the provisions of Sec.249(4) came into effect from 1-10-1975, the same could not apply to the appeals relating to the assessment years 1973-74 and 1974-75 as that section could not apply retrospectively. The Tribunal, therefore, set aside the order of the Appellate Assistant Commissioner and restored the appeals for disposal on merits. The Department has now come before us on the basis of the referred question.

(3.) In view of the importance of the question and in view of the fact that nobody was representing the assessee before us, we appointed learned counsel Mr. P.P.S. Janarthana Raja, as amicus curiae.