JAIRAMDAS BHAGCHAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question has been referred for our answer under section 256 of the Income -tax, 1961, at the instance of the assessee :

(2.) THIS reference is concerned with assessment year 1972 -73. The assessee is a registered firm deriving income from trading in cotton. It has its head office at Dhamangaon, Maharashtra and branches in Maharashtra as well as outside. The assessee is obliged to file under the Sales Tax Act every quarter a return and to pay tax accordingly. For the year under consideration, the assesse did not make payment of sales tax in the 3rd and 4th quarters as a result of which penalty was imposed under section 36(3) of the Sales Tax Act. It is apparent that section 36(3) of the Sales Tax Act means the Bombay Sales Tax Act, 1959.

(3.) SECTION 36(3), as applicable at the material time read in full, thus :