COMMISSIONER OF INCOME TAX Vs. P C MAHESHWARI

JUDGEMENT

(1.) HEARD on application under s. 260(1) of the IT Act, 1961. The Tribunal has referred the following question for the opinion of this Court :

(2.) THE assessee was deriving individual income in the year under consideration from salary, share profit from M/s Pratap Steels and dividend. He declared his total income at Rs. 9,32,161 and the assessment was completed on a total income of Rs. 9,73,320. As the assessee has not made any compulsory deposit as required under the Compulsory Deposit Scheme (IT Payers) Act, 1974, the AO has initiated penalty proceedings under s. 10 of the Compulsory Deposit Scheme Act, 1974. After considering the explanation, he levied the penalty of Rs. 40,565 which is 20 per cent of the amount of requisite under Act, 1974, which was required to be made by the assessee.