JUDGMENT

Bharucha, J.-C.A. Nos. 98-102 of 2000 :

This judgment and order under appeal was passed by a Division Bench of the High Court of Karnataka on writ appeals.

2. Briefly stated, these are the facts : These appeals relate to the Assessment Years 1981-82 to 1985-86. After the Agricultural Income-Tax Officer had completed its assessments for these years under the provisions of the Karnataka Agricultural Income-Tax Act, 1957, the assessee filed appeals before the Assistant Commissioner, Agricultural Income-Tax. On the assessee s applications for stay, the Assistant Commissioner passed orders on 24th June, 1989 staying the recovery of the tax assessed subject to the payment of a stated amount and the furnishing of a bank guarantee. The conditions of the stay orders were complied with. The appeals were thereafter dismissed by the Assistant Commissioner, on 19th March, 1990. Thereupon, the bank guarantee was invoked and the balance of the amount of tax realized by the taxation authorities.

3. On 7th June, 1996, the Agricultural Income Tax Officer issued to the assessee a notice under Section 42(1) of the said Act proposing to levy penalty in the aggregate sum of Rs. 7,65,578 for not com