K.P. NARAYANAPPA SETTY & CO. vs COMMISSIONER OF INCOME-TAX, A.P. R.C. — 1989 PTD 1333

Citation: 1989 PTD 1333

Court: Andhra Paradesh High Court

Year: 1971

Decision Date: 1971-11-05

Parties: K.P. NARAYANAPPA SETTY & CO. vs COMMISSIONER OF INCOME-TAX, A.P. R.C.

Headnotes

Case cited as 1989 PTD 1333

Judgment Text

Court Name: Andhra Paradesh High Court Judge(s): Chinnappa Reddy, A. D. V. Reddy Title: K.P. NARAYANAPPA SETTY & CO. vs COMMISSIONER OF INCOME-TAX, A.P. R.C. Case No.: R.C. No,8 of 1970 Date of Judgment:1971-11-05 Reported As: 1989 PTD 1333 Result: Question answered in the negative JUDGMENT JUDGMENT ' A.D.V. REDDY, J.--The question referred to us by the Appellate Tribunal is as follows: "Whether, on the facts and in the circumstances of the case, any penalty was exigible in the assessee's case for the assessm ent year 1946-47? ' For the assessm ent year 1946-47 the assessee was assessed to a certain sum of tax and the assessm ent became final on July 24, 1954. But there was no order levying penalty in his case till July 1, 1963. Though no period for levying the penalty has been fixed in the Indian Income-tax Act, 1922, it has been held by this Court that there should not be any inordinate delay and it should be levied within a reasonable time. Even under the new Act the period prescribed for levy of penalty is two years after the completion of the assessment. In the present case, even after the order of the Tribunal on the assessm ent a period of nine years had elapsed. The department has not chosen to furnish any explanation for the inordinate delay. Here reduction in the quantum of penalty is not a ground to say that no interference is justified. As there is inordinate delay we consider that the levy of penalty has not been made within a reasonable time. We therefore,…

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