Meaning of “Assessed tax v. Tax payable”

Case Name :  Mrs. K.T.M.S. Umma salma v. Cit 

Citation : [1983] 144 itr 890 (mad.)

Court : Madras high court

Section : 271

Meaning : There is a distinction between the term ‘the assessed tax’ and ‘the tax payable’. While the assessed tax is the amount of tax as determined by the ito under section 143 of the act, the tax payable is that amount for which a notice is issued under section 156 of the act. Hence, the term ‘the assessed tax’ used in section 271(1)(a) would mean only the amount of tax as determined by the ito under section 143 of the act. In other words, the tax paid after the assessment of the tax by the ito cannot be deducted from ‘the assessed tax’ for computation of penalty.

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