COMMISSIONER OF INCOME TAX Vs. DY HOUSING COMMISSIONER

JUDGEMENT

(1.) THE instant reference under Section 256(1) of the Income-tax Act, 1961, has been made by the Income-tax Appellate Tribunal, Jaipur, seeking the opinion of this court on the following substantial question:

(2.) THE respondent Deputy Housing Commissioner, Rajasthan Housing Board, Jodhpur, is the person responsible for paying the tax on the income chargeable to tax under the head "Salaries" to the employees working under him. He is also responsible under Section 206 of the Act of 1961, for deducting tax at source. He is also required to prepare, deliver or cause to be delivered to the prescribed income-tax authority within the prescribed time after the end of each financial year, a return of the tax deducted in the prescribed Form No. 24. Though the respondent duly deducted the tax at source before making the payment of salaries to his employees and also deposited the same with the State Exchequer in time, yet he failed to file the return of such deductions. Thus, the Assessing Officer imposed penalty of Rs. 24,000 being the minimum under Section 272A(2)(c) of the Act.