TMI Blog1984 (3) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... te Assistant The year of assessment is 1972-73, previous year ending in October, 1971. It is alleged that the assessee committed default in not filing the estimates and, therefore, he was served with a notice under section 274 read with section 273(b) of the Income-tax Act, 1961. In compliance with the notice, the assessee filed a reply stating that though the estimates were not filed, advance tax of Rs. 50,000 was paid by the assessee in time and since the assessee admitted the default of non-filing of the estimates, the Income-tax Officer levied a penalty of Rs. 5,325 under section 273(b) of the Act against which the assessee went up in appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reasonable cause in accordance with section 212(3) and it is contended that section 212(3) provides that when person is not previously assessed, he shall furnish an estimate of the advance tax payable by him on the current income calculated in the manner laid down in section 209. It was, therefore, contended that penalty under section 273(b) is attracted when there is non-compliance with sub-section (3) of section 212 and sub-section (3) contemplates the estimates of income and advance tax. Admittedly, part of sub-section (3) of section 212 was complied with as advance tax was paid by the assessee and it was contended that for failure on the part of the assessee to submit an estimate the assessee has shown reasonable cause and under these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... default in filing the estimates. Section 273(b) provides: " 273. If the Income-tax Officer, in the course of any proceedings in connection, with the regular assessment for the assessment year commencing on 1st day of April, 1970, or any subsequent assessment year, is satisfied that any assessee-... (b) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of subsection (3) of section 212." The section thus clearly provides that where an assessee fails to furnish an estimate of the advance tax payable by him without any reasonable cause in accordance with the provisions of sub-section (3) of section 212, penalty could be imposed. As regards the reasonable cause, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and advance tax payable by him. It is, therefore, clear that penalty has been provided under clause (b) of section 273 for non-compliance of sub-section (3) of section 212 which contemplates two things-filing of estimates and payment of advance tax. The main contention advanced by the learned counsel for the assessee is that non-filing of estimates is a mere technical default, that substantial compliance was there as the advance tax was paid, but it could not be disputed that even if advance tax was paid, there was a default within the language of section 212(3) as the estimate of current income was not submitted in time and, therefore, it could not be contended that the Income-tax Officer has no jurisdiction under section 273(b) to impose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner in his order felt that the penalty provision under section 273(b) no doubt is attracted but as the penalty could be imposed for both the things, failure to file estimate, failure to deposit advance tax and, therefore, it was necessary for the Incometax Officer to consider the question of imposition of penalty after considering the advance tax deposited by the assessee. This order was set aside by the Tribunal mainly on the ground that section 273(b) is attracted but it could not be disputed that the Income-tax Officer while imposing penalty had not considered the deposit of the advance tax to the tune of Rs. 50,000 as admittedly section 212(3) contemplates two things-filing of estimate and depositing the advance tax and for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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