KASHMIR VASTRALAYA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Articles 226 and 227 of the Constitution of India for quashing the order of the Income-tax Officer, Ward 'A', Ranchi Circle, Ranchi, dated October 19, 1974 (annexure 2), the order of the Appellate Assistant Commissioner of Income-tax, Ranchi Range, Ranchi, dated April I, 1975 (annexure 3), and of the Commissioner of Income-tax, Bibar-I, Patna, dated January 30, 1976 (annexure ' 5'), imposing penalty of Rs. 300 upon the petitioner for not filing the estimate in regard to advance tax payable by him. The penalty proceeding was initiated in terms of Section 273(c) of the Income-tax Act, 1961 (hereinafter referred to as "the Act").

(2.) THE petitioner is a registered partnership firm dealing in clothes in the town of Ranchi. THE accounting year of the petitioner ends with the 31st March every year. On June 21, 1971, a notice was issued to the petitioner calling upon him to pay Rs. 3,050 as advance tax for the assessment year 1972-73. THE petitioner paid the advance tax demanded by annexure 1, Having failed to submit to the Income-tax Officer an estimate of the current income and the advance tax payable by him on the current income calculated in the manner laid down in Section 209 of the Act the petitioner filed the returns under Section 140A of the Act and paid along with it all that he was liable to pay upon his total income during the assessment year 1972-73. THE petitioner showed in his return a total iucome of Rs. 80,317. THE amount of tax computed on the current income of the petitioner having exceeded the amount of advance tax demanded from him by more than 33-1/3% and the petitioner not having filed the estimate as required by Section 212(3A), the Income-tax Officer, Ranchi, initiated a proceeding under Section 273(c). A notice with enclosure was served upon the petitioner. After hearing the petitioner the assessing officer passed the impugned order contained in annexure 2. THE submission on behalf of the petitioner having failed before the Income-tax Officer, Ward A, Ranchi Circle, Ranchi, the petitioner appealed to the Appellate Assistant Commissioner of Income-tax, Ranchi Range, Ranchi, but without any success. THE petitioner then moved the Commissioner of Income-tax, Bihar-I, Patna, under Section 264(1) of the Act, but the petitioner's contention failed to find favour with him as well. THE petitioner, therefore, has by the present application prayed for quashing of annexures " 2 ", " 3 " and " 5 ". THE application was opposed by learned standing counsel for the income-tax department.

(3.) THE law clothed the Commissioner with authority to minimise the rigour of the law wherever it was justified, but the petitioner chose not to comply with the requirement of Sub-section (3A) as well as the opportunity to get the date extended. In my view, therefore, there was wilful default on the part of the petitioner in not filing the estimate of income and advance-tax.