RAMLAL CHIRONJILAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference has been made by the Income-tax Tribunal at the instance of the assessee under Section 256(1) of the Income-tax Act, 1961, soliciting our opinion on the following stated question :

(2.) THE deceptive formulation of the question notwithstanding, what we are in fact called upon to answer is whether service of notice on the assessee under Section 139(2) wipes off the default committed by him in filing the return under Section 139(1) of the Act. THEre are divergent views expressed by two Division Benches of this court in Addl CIT v. Rampratap Shankarlal [1979] 117 ITR 662 and Ckunnilal and Bros. v. CIT [1979] 119 ITR 199, on the issue and hence it becomes necessary to have a fresh look at the matter, if only to take sides with one or the other judgment.

(3.) AT this stage, it would be advantageous to survey and examine the relevant provisions having bearing on the matter. Section 139(1) casts an obligation on the assessee to file a return of his income before the specified date depending upon the adopted accounting system. If he fails, the Income-tax Officer is empowered under Section 139(2) to serve a notice requiring the assessee to file the return within 30 days from the date of notice. Section 271(1) provides for levy of penalty in case of a default by the assessee in filing the voluntary return under Section 139(1) and also for non-compliance with notice under Section 139(2).