COMMISSIONER OF INCOME-TAX Vs. P B NANDA

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench 'b', has referred the following question of law for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the penalty under Section 273 (a) of the Income-tax Act, 1961, should be levied by reference to the net tax payable on completion of the assessment after giving credit not only for the advance tax paid and the tax deducted at source but also for the tax paid on self-assessment under Section 140a of the Income-tax Act, 1961 ? "

(2.) THE AAC of Income-tax, 'a' Range, Rohtak, levied penalty on the assessee under Section 273 (a) of the I. T. Act, 1961 (hereinafter referred to as " the Act "), for the assessment year 1968-69. Against that order, the assessee filed an appeal before the Income-tax Appellate Tribunal (hereinafter called " the Tribunal "), and the Tribunal, by order dated 28th December, 1973, allowed the appeal partly and ordered that, in computing the net tax payable, besides giving credit for the advance tax paid and for tax deducted at source, the tax paid on self-assessment under Section 140a of of the Act should be excluded for the purposes of levying the penalty. The Commissioner sought a reference on the question of law which has been enumerated above.

(3.) THE Tribunal, while dealing with the point in issue before us, has stated as follows in its order dated 28th December, 1973 : " The penalty, however, should be levied by reference to the net tax payable on the completion of the assessment after giving credit not only for the advance tax paid and tax deducted at source but also for tax paid on self-assessment under Section 140a. The penalty should be restricted to 10% of the statutory amount prescribed in Section 273, as it was in force on April 1, 1968, on the lines indicated earlier. "