COMMISSIONER OF INCOME TAX Vs. SECRETARY

JUDGEMENT

(1.) BY this Reference under Section 256(1) of the Income Tax Act, 1961, the following question of law was referred to this Court: Whether on the facts and circumstances of the case the Hon'ble Tribunal has correctly interpreted the provisions of Section 206 of IT Act with regard to the requirements of preparation and filing of statements prior to amendment and after the amendment (Amendment was brought about by Finance (No. 2) Act, 1991 w.e.f 27.9.91 thereby cancelling the penalty of Rs. 30,400 levied Under Section 272A(2).

(2.) THE facts of the case in brief are that the assessee is a Secretary of Zila Parishad. He was called upon to pay a penalty of Rs. 30,400/ - under Section 272A(2) in failure to file form No. 26C. This form was to be filed by a person who is deducting the tax at source before payment to the contractors and sub -contractors. Admittedly taxes were adequately deducted and deposited in. time within the Government Treasury. The stand of the appellant in the show cause was that since Form 26C was not available, therefore, the necessary provisions were not complied with. The Tribunal in the order of reference has observed as under: He further observed that the requisite form was available at a little distance i.e., Jamshedpur. The learned CIT (A) endorsed the view of the learned DC (Admn.) and confirmed the penalty. The appellant further went in appeal to the Tribunal. The Tribunal after hearing both the parties observed as under: I have considered the rival submissions, facts and materials on record. Section 272A(2) is purely a penal provision. So the approach to the interpretation of the Act should be strictly grammatical. This penalty is leviable for non -compliance of provisions of Section 206. A part of Section in the relevant period was as follows (Assessment year 1989 -90):

(3.) From what has been enumerated above, the above question does arise which we refer to the Hon'ble High Court for its esteemed opinion.