KISHANLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS consolidated reference by the Income -tax Appellate Tribunal, Bombay, at the instance of the assessee, Kishanlal of Baghana, Neemuch, arises out of the Tribunals common order dismissing two appeals relating to the assessment years 1960 -61 and 1961 -62 preferred by the assessee. The Tribunal upheld the order of the Income -tax Officers order, imposing penalty on the assessee for his failure to file returns under section 22 (1) of the Indian Income -tax Act, 1922, withing 65 days of the publication of public notices under that section. The two questions which have been placed before us for decision are :

(2.) FOR the assessment year 1960 -61 the assessee filed his return on 20th March, 1962. The assessment for that year was completed on 20th September, 1962. He filed his return on 31st March, 1962, for the next assessment year, namely, 1961 -62. The assessment for that year also was completed on 20th September, 1962. Admittedly, the returns for these two assessment years were not filed within time by the assessee. Consequently, the Income -tax Officer imposed on the assessee a penalty of Rs. 10,600 under section 271(1)(a) of the Income -tax Act, 1961, for his failure to file in time the return for the assessment year 1960 -61. The penalty was imposed after complying with section 274 of the 1961 Act. Similarly, a penalty of Rs. 4,000 was imposed on the assessee for his failure to file in time the return for the assessment year 1961 -62. The Income -tax Officer rejected the contention of the assessee that if he had not filed the returns in time, then penalty should have been imposed under section 28 of the Income -tax Act, 1922, and not under the 1961 Act. The contention was repeated unsuccessfully before the Appellate Assistant Commissioner and the Appellate Tribunal and the appeals preferred by the assessee were dismissed by the Appellate Assistant Commissioner and by the Tribunal.

(3.) THE material portion of section 271(1) runs thus :