COMMISSIONER OF INCOME-TAX Vs. MANGAT RAM KUTHIALA

JUDGEMENT

(1.) THE assessee filed a return after a delay of four years and three months. The delay stood unexplained. Proceedings for levy of penalty were instituted. The income of the assessee was first assessed at Rs. 58,920 and tax of Rs. 23,265 was levied. The income was later revised to Rs. 1,44,353 and the tax determined was Rs. 91,924. There was a further revision and the income was finally assessed at Rs. 90,564 and the tax computed at Rs. 43,533. The assessee, in the meanwhile, had paid the tax of Rs. 91,924. He, therefore, became entitled to a refund of Rs. 58,341. In the penaly proceedings, it was argued that as no tax was payable by him, no penalty could be levied. This argument was accepted by the Income-tax Appellate Tribunal and the penalty levied by the Income-tax Officer was deleted. At the instance of the Commissioner of Income-tax, the following question has been referred to us for our decision :

(2.) WE are relieved of much of the difficulty in answering the question as a result of the amendment of Section 271 (l) (a) (i) in which the expression now used is "assessed tax" and not "tax payable". This amendment has been made retrospective and the amending Act further provides that it shall be deemed to have always been substituted. In view of this amendment, it is clear that the only answer that we can return to the question has to be in the negative.