LexCOMMISSIONER OF INCOME-TAX, DELHL (CENTRAL) NEW DELHI versus M/S. SINGH ENGINEERING WORKS (P) LTD. KANPUR
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A B c D E F G 7ti9 COMMISSIONER OF INCOME-TAX, DELHl (CENTRAL) NEW DELHI v. M/S. SINGH l!:NGlNEERING WORKS (P) LTD. KANPUR Aug.ust 11, 1970 (J. C. SHAH, K. S. HEGDE AND A. N. GROVER, JJ.j ftlcome-tax Act \43 of 1961), ss . . 212, 273 and 297 (2)(g)-Proceed- ingl' under s. 18-A of the 1922-Act-Assessinent; cornpleted after 1st April l~b2-lmposition of penalty under 1961 Act-Validity. The asse~see was req!.lired under s. l8A( I) of the lncom~·tai. Act, 1922, tc make advance payments of tax for asse;sment years 1960-61 and 1961-62. The assessee made his own estimates of the tax for the two yl.!ars and paid the amounts. But th:::n the assessee filed returns of income for the two years, the Income-tax. Officer assessed the total income of the assessee on January 21, 1963, at much higher figures for the two yi:u.rs, and held that the assessee furnished inaccurate and untru~ estimates of lax and imposed penalties under s. 273 of the 1961-Act. The Tribunal held that the penalties could not bo imposed, because, ( 1) the default under s. !SA of the 1922-Aot cuuld not be treated as a default under tho l9t>l Act; and (2) s.297(2)(g) of the 1961-Act did not Sa\<: the pro- ' cecdings under s.JSA of the 1922-Act. I In a reference to this Court, under s.257 of the 1961 Act, HELD : Section 212 of the 1961 Act corresponds to s.18A(2) o! the l922-Act and s. 273 o! the 1961-Act, which empowers the levy of pcnolty corresponds to s. 18A(9) o! the 1922-Act. According to s. 297(2) (g) of the 1961-Act, a proceeding for the impositilin of a penaity in respect of an assessment for the year ending on 31st March 1962 or any carlil'f year, which is completed on or after 1st .A.pril 1962, may be ioitiC!ted, and the penalty may be imposed under the new Act. The sub-section is applicable to th.e pn .. >Scnt case, since the assessn1 .. ~nt was com· plctcd after 1st April 1962. Th·ordore, penalty could bo imposed under th., l96l·Act, that is, under;, 273. which will apply nwtati> nwtandis to the proceedings. [770 H; 771 A-B; 722 B-CJ M!.r. Jain 81w. & Ors. v. U11ir111 of /11di<1. [1970] 3 S.C.R. 251 followed. C1v1L APl'ELLATE JURISDICTION: Income-tax Reference Cases Nos. 1 dnd 2 of 1969. References under s. 257 of the Indian l111Come-tax Act, 1961 made by the Income-tax Arpe\hte Tribur:al, AllahabJd Bench in R.A. Nos. 1253 and 1254 of 1967-68 (LT.A. Nos. 13)22 a11d 13923 o.f 1965-66. R. N. Sachthey and Gobind Das, for the appellant (in both the H .:ases). P. N. Pachauri, J. P. Goyal and Sob;iamal Jain, fer the respon- dent (in both the cases). L169Sup.Cl(P)/71-5 770 SUPREME COURT REPORTS [1971] 1 S.C.R. The Judgment of the Court was delivered by Grover, J, The respondent company which is an assessee was required by the Incom'! tax Officer by 110tices issued under s. l 8A (1) of the Indian Income .tax Act 1922, hereinafter called the "Old Act" to make an advance payment . ·of tax amounting to Rs. 3,17 077 for the assessment year 1960 .. 61 and Rs. 3,54,911 for the ~ssessment year 1961-62. The assessee chose to file its own estimate of tax under s. l 8A(2) and in accordance therewith it paid two instalments of advance tax of Rs. 38,333/- each for the assessment year 1960-61 and three mslalments of Rs. 12,875/- each for the assessment year 1961-62. Thereafter the assessee filed revised estimates of tax in the month of March 1960 and March 1961 respectively estimating the tax at Rs. 1,80,000/- for each of the assessment years on a total income of Rs. 4 lakhs. The balance of advance tax as per its revised estimate was paid in time after deducting the instalments which had already been paid. The a.ssessee subsequently filed its returns of income for the aforesaid two years declaring the total income of Rs. 4,53,942/- and Rs, 7,02,383/- respectively. The Income tax Officer completed the assessment of total income of Rs. 5,35,000/- ancJ Rs. 8,99,029/- for the assessment years 1960-61 and 1961-62 on January 21, 1963 after the Income tax Act 1961, hereinafter call- ed the "New Act" had come into force. The Income tax Officer took the view that the assessee had furnished inaccurate and untrue estimates of tax and had not given any satisfactory explanation in respect of them. He imposed penalties under s. 273 of the new Act amom:Hing to Rs. 13 .700:' - and Rs. 12.342/ _for the assessment years 1960-61 and 1961-62 respectively. Appeals to the Appel- late As
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