SURENDRA PRASAD SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE references were consolidated in the statement of cases. Therefore, we propose to dispose of all the cases in one order.

(2.) THE assessment orders in all the cases were finalised on March 14, 1972, for the years 1964-65, 1966-67, 1967-68, 1968-69, 1969-70, 1970-71 and as respects 1965-66, the order was finalised on March 18, 1971. THE Additional Commissioner of Income-tax, exercising his power of revision, scrutinised the records to find out whether the orders resulted in the detriment of the interests of the Revenue. In the course of the order, the following points were formulated : "(i) THE Income-tax Officer has erred in not initiating penalty proceedings under Section 271(1)(a) for all the seven assessment years and under Section 271(1)(c) of the Income-tax Act, 1961, for all the years except 1965-66 assessment year, (ii) THE Income-tax Officer has erred in not initiating penalty proceedings under Section 273 for default of payment of advance tax under Section 212 of the Income-tax Act, 1961, for all the seven assessment years, (iii) THE Income-tax Officer has not charged interest under Section 139 for the assessment years 1964-65, 1965-66, 1967-68 and 1968-69 and interest under Section 217 of the Income-tax Act, 1961, for all the seven assessment years ; and (iv) Annuity Deposits have not been charged in respect of the assessment years 1964-65 to 1966-67" and he held "Considering all these defects in the assessment orders, I would hold that the assessments have not been proper in the face of non-initiation of penalty proceedings under Section 271(1)(a) and Section 273 for all the seven assessment years 1964-65 to 1970-71, for non-initiation of penalty proceedings under Section 271(1)(c) for the assessment years 1966-67 to 1970-71 and for non-charging of interest leviable under Section 139 for the assessment years 1964-65, 1965-66, 1967-68 and 1968-69 as also of interest under Section 217 of the Income-tax Act, 1961, for all the seven assessment years. All the assessments are, therefore, set aside with a direction that penalty proceedings should be initiated as directed in respect of the relevant years, proper interest chargeable under Section 139 for the assessment years mentioned and under Section 217 for all the above years should be charged. Besides, charging of additional income-tax in lieu of Annuity Deposits payable should also be verified in respect of the assessment years 1964-65 to 1966-67 ".

(3.) THE Appellate Tribunal, however, made such an error and directed that interest be charged by the Income-tax Officer.